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REVISTA

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256 views76 pages

24 de 54 F 6

REVISTA

Uploaded by

Ignacio Marin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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JUICE &

JUICE DRINKS SUPERMARKETS ANTIOXIDANTS


Super-premium offerings Beverages a bright Ingredient helps
outpace category spot for the channel boost immunity

Trends, technology & products shaping the marketplace January 2019

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6 Beverage Beat 50 Beverage R&D
8 Industry Issues The latest in new product development trends.

16 Category Focus 54 Ingredient Spotlight


Super-premium juices outperform category.
Berry flavonoids and antioxidants boost immunity.
22 New Products
56 Distribution
28 Cover Story Beverage fleet invests in new technology.
The Coca-Cola Co. completes historic bottling initiative.

34 Up Close With… 58 Operations


Blossom Water LLC
• Reusable packaging systems improve manufacturers’ footprint.
36 Channel Strategies • Adaptable configurations necessary for manufacturing
Beverage sector a bright spot in supermarkets
62 Supplier’s Marketplace
40 Between Drinks
42 Packaging 66 Market Insights
• New craft trends impact can filling and seaming equipment.
• Fluctuating consumer trends influence caps and closures market. 74 The Last Drop

4 | Beverage Industry | JANUARY 2019 | bevindustry.com Cover image courtesy of The Coca-Cola Co.
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please contact Customer Service at:
TEL.: 800-952-6643 or
FAX: 847-763-9538 or
EMAIL: [email protected]
www.bevindustry.com

Watching for what’s ‘hot’


PUBLISHER
Western US
STEVE PINTARELLI
[email protected]
949-600-8092

WITH THE JANUARY CHILL IN THE AIR, REACHING FOR A HOT EDITORIAL
Editor
beverage becomes almost a necessity for those braving the colder
JESSICA JACOBSEN
climates. Given this chilly weather, it’s no wonder that January [email protected]
Managing Editor
also is Hot Tea Month, giving consumer publications and bloggers BARBARA HARFMANN
a plethora of tea-centric topics and celebration guides. [email protected]

Associate Editor
Although tea’s history dates back centuries, beverage manufacturers are finding new TAYLOR KARG
ways to keep this established category a “hot” topic for consumers. For example, Lipton [email protected]
introduced its Wellness line back in 2017. The wellness range was made with carefully
ART
selected botanicals and blended with essential oils to support daily well-being, the
Art Director
company says. DANA KNAPP
Roughly a year later, the brand expanded the line to include Terrific Turmeric, [email protected]

an herbal tea that features an amalgamation of turmeric, ginger and orange. Citing CONTRIBUTORS
Ayurvedic tradition, the blend is designed for aiding digestion and supporting joint
JEFF CIOLETTI
movement, the company says. Additionally, Miracle Moringa, an herbal supplement
JOHN PETER KOSS
that combines moringa, green tea and pomegranate, joined the lineup.
ADVERTISING
Analysts also have been tracking the ways in which tea manufacturers are East Coast, Canada
reinvigorating the hot tea category. In a September 2018 blog post titled “5 tea trends to BRUCE KLION
look for in 2019,” Amrin Walji, a senior innovation analyst for Mintel, pinpoints trends [email protected]
248-786-1716
from around globe. Utilizing the Mintel Global New Products Database, she selected
Midwest
five products that supports 2019 trends.
CHRISTOPHER CASEY
In addition to power teas like Lipton Daily Boost Green Tea with Ginger, Lemon [email protected]
Verbena and Turmeric from Germany, Walji highlights bold flavors (Green Hills Rum 847-894-8761

and Honey Flavored Herbal Tea from Poland), a veggie revolution (Pompadour Veggie Pacific Northwest

Mix Infusión de Verduras Relax from Spain), relaxation (Fabindia Organics Organic WAYNE WIGGINS JR.
[email protected]
India Certified Organic Tulsi Honey Chamomile Tea from India), and digestive health
Inside Sales
(Cofco Chinatea Pro Tea from Malaysia). MARIANNE MAJERUS
Analysts also note how country of origin is coming into play for the tea market. In a [email protected]
248-786-1262
June 2018 Euromonitor International blog post titled “Trendspotting at World Tea Expo
Senior Classified Sales Manager
2018,” Matthew Barry detailed how exhibitors at the expo were trying to educate tea
CATHERINE WYNN
drinkers about how unique characteristics can be found in tea types based on specific [email protected]
origins, similar to wines and grape-growing regions. 847-405-4010

“Producers were thus trying to highlight how their tea’s natural origins made it Advertising/Production Manager

unique,” he wrote. “Kenyan producers, for example, were displaying purple tea, a BRIAN BIDDLE
[email protected]
unique strain noted for its purplish tint and high flavonoid content. This was especially Corporate Reprint Manager
true of countries not traditionally known for their tea production. Producers from JILL DEVRIES
Colombia, for example, were highlighting the unique flavors of their tea and trying to [email protected]

show people who instinctively associate Colombia with coffee that it is a tea producer AUDIENCE DEVELOPMENT
as well.” Audience Marketing Project Manager

As consumers kick-off the new year, perhaps they will be warming themselves with SHERRI GRONLI
Toll Free: 800-952-6643
some hot teas that extend beyond the traditional set. 847-559-7399

Integrated Media Coordinator

CATHERINE NEAL
Audience Audit/Postal Specialist

JESSICA JACOBSEN, Editor WAFAA S. KASHAT


LIST RENTAL
POSTAL CONTACT:
Kevin Collopy at 402-836-6265
Toll Free: 800-223-2194 ext. 684
[email protected]

EMAIL CONTACT:
Michael Costantino at 402-836-6266

Visit us online
[email protected]

CORPORATE DIRECTORS
Go to BEVINDUSTRY.COM for archived articles, to conduct keyword searches, Human Resources & Information Technology RITA M. FOUMIA
BNP MEDIA HELPS Production VINCENT M. MICONI
and to print or download articles. For high-quality reprints of articles or advertisements, PEOPLE SUCCEED Finance LISA L. PAULUS
contact JILL DEVRIES: TEL.: 248/244-1726, EMAIL: [email protected]. IN BUSINESS WITH Creative MICHAEL T. POWELL
SUPERIOR INFORMATION Events SCOTT WOLTERS
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6 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Founder & CEO,
The Mark Anthony Group of Companies
Koios Beverage Corp. Coquitlam, British Columbia,
announced the appointment of Theo van der Linde as its
Industry Issues chief financial officer. Van der Linde is an accountant
with more than 20 years of experience in finance,
reporting, regulatory requirements, public company
administration, equity markets and the financing of
The Coffee Bean & Tea Leaf publicly traded companies, the company says.

extends footprint Sproutly Canada Inc., Vancouver, announced the

T
he Coffee Bean & Tea Leaf brand, Los coffee and tea lovers in Central California. We’re appointment of Constantine Constandis to its Advisory
Angeles, announced that it will expand its thrilled to become part of The Coffee Bean & Tea Board. Constandis brings more than 34 years of
presence into Central California through Leaf family.” experience in the wine and spirits industry in the United
its new franchisee, Golden State Coffee & Tea Inc. To date, the Los Angeles-based chain has 312 States, Canada, Europe and Asia, and formerly was a
This news comes on the heels of the company’s stores across 14 states, and more than 1,200 senior executive at Pernod Ricard SA. As a result of
recent expansion and return to New York City locations across 30 countries worldwide. the board currently being at its maximum capacity,
with the announcement to open up 100 locations “The Coffee Bean & Tea Leaf carefully and Constandis initially will be appointed to the Advisory
during the next several years. personally selects new opportunities that will Board until the company’s next Annual General
Golden State Coffee & Tea Inc. will open 20 strengthen our customers’ deep-rooted loyalty Meeting, at which time the board intends to nominate a
The Coffee Bean & Tea Leaf stores throughout the that exists across the globe,” said John Fuller, larger Board of Directors, it says.
following six Central California counties: Kern, chief executive officer, The Coffee Bean & Tea
San Luis Obispo, Tulare, Kings, Monterey and Leaf. “We know our partner Golden State Coffee Whitestone, N.Y.-based BODYARMOR hired Brent Hastie as
Fresno. The area boasts a long coastline and parts & Tea Inc. will introduce The Coffee Bean & Tea its new president, effective in March. He will directly
of the central valley and presents an untapped Leaf’s high-quality coffee and tea to Central report to Co-Founder and Chairman, Mike Repole. Hastie
growth opportunity for The Coffee Bean & Tea California and provide new guests with the brand will oversee all aspects of the business as the brand
Leaf brand, the company says. experience they expect.” continues to expand retail distribution, kicks off its
“The Coffee Bean & Tea Leaf brand provides an As a part of the development agreement, first full year being distributed by Coca-Cola bottlers
inviting and enriching coffee and tea experience,” Golden State Coffee & Tea Inc. acquired the and looks to expand globally, the company says.
said Simranjit Sandhu, partner of Golden State corporate-owned The Coffee Bean & Tea Leaf Hastie is a 10-year veteran of the beverage industry,
Coffee & Tea Inc., in a statement. “We want to store located at 354 5 Cities Drive in Pismo Beach, most recently serving as chief financial and supply
bring that experience and high-quality product to Calif. BI chain officer of Coca-Cola North America, it adds.

Brewers Associat ion The Alkaline Water Company Inc. (A88 Infused), Scottsdale,
Ariz., announced that its wholly owned subsidiary,
notes 2018 milestones A88 Infused Beverage Division Inc., has entered into a
binding letter of agreement with Infusion Biosciences

A
s craft brewers continue to make waves being compiled, there will potentially be 1,000 Inc. (IBS), that provides a non-exclusive license to
in an evolving market, the Brewers brewery openings in 2018. utilize its proprietary Aqueous Phytorecovery Process
Association, Boulder, Colo., looked back technology, the company says. Under the agreement,
on the craft brewing community’s contributions, ■ #SeektheSeal: More than 4,000 craft brewing IBS agreed to provide A88 Infused with ready-to-
highlights and defining beer moments of the past companies have adopted the independent craft drink natural hemp-extract formulations, it adds.
year. brewer seal since its inception in June 2017,
“The brewing landscape is shifting, yet small representing 85 percent of the volume of craft Kalaheo, Kauai-based Kauai Coffee Co. announced that
and independent breweries continue to find beer brewed. Beer lovers are encouraged to hash its new Red Typica brand now is Non-GMO Project
market success,” said Julia Herz, craft beer tag #SeektheSeal via the Brewers Association’s Verified. Red Typica is available at Costco locations
program director for the Brewers Association, first-ever national advertising campaign That’s through Hawaii and online.
in a statement. “Brewers are finding ways to Independence You’re Tasting.
differentiate themselves in a competitive market, Joe Doss, president and chief executive officer of the
become pillars of communities, and embrace new ■ Community hubs: 85 percent of 21+ adults live International Bottled Water Association (IBWA) Alexandra, Va.,
experiences and occasions to connect with beer within 10 miles of a brewery. The continued has been nominated by the Berkeley Springs International
lovers.” growth in breweries means that more Water Tasting committee (BSIWT), Berkeley Springs,
The following are highlights from 2018: communities have a local brewery and it is easier W.Va., to receive its Lifetime Achievement Award.
than ever to tour or visit one. Doss has led the IBWA since 1999 and has extensive
■ Stable and steady: The craft brewing industry experience in association management, food and drug
continues to grow. The Brewers Association’s ■ Investing in the future: Craft brewers are putting matters, government affairs and public relations, the
mid-year survey measured 5 percent growth by their savings from a recalibrated federal excise association says. The award will be presented at the
volume, and although there have been signs of tax to work through economic development, new annual seminar and tasting event, taking place Feb.
slightly slower growth in the second half of the hires, increased employee benefits and pay, and 21-24 in Berkeley Springs, Calif. In other news, the
year, it is clear that craft beer sales will once again increased charitable contributions. IBWA announced its 2018-2019 officers and board of
reach a new high in 2018. directors. Lynn Wachtmann, of Maumee Valley Bottlers,
■ The haze craze: The Brewers Association added Inc., was re-elected as chairman of the IBWA Board of
■ Big impact from small breweries: As craft’s three juicy or hazy styles to its Beer Style Guidelines Directors for 2018-2019. He is a member of IBWA’s
market share has grown, so has its economic and Great American Beer Festival competition executive committee and Board of Directors. He
impact, which totals more than $76 billion. The in 2018, resulting in a record number of entries. previously served as 2017-2018 chairman. In addition
craft brewing community is responsible for Additionally, brewers continue to innovate and to Wachtmann, the following IBWA members approved
500,000 jobs, with more than 135,000 of those create emerging styles that offer new opportunities the following slate of officers for 2018-2019: Robert
directly at breweries and brewpubs. to connect with a diverse audience of beer lovers. Smith as vice chairman, Brian Hess as treasurer and
Shayron Barnes-Selby as immediate past chairwoman.
■ 7,000 strong and growing: The number of ■ Just brew it: It’s estimated that 1.1 million
breweries in the United States hit yet another homebrewers in the United States brewed Denver-based New Age Beverage Corp. announced the
all-time high in 2018, eclipsing 7,000 at the end 1.4 million barrels of beer, equal to 1 percent of acquisition of Morinda Holdings, Inc., American Fork,
of October. Although the final numbers are still U.S. beer production. BI Utah, which will expand its strategic push into
cannabis-infused beverages globally, and strengthen
its healthy-beverage portfolio, the company says.
8 | Beverage Industry | JANUARY 2019 | bevindustry.com New Age acquired Morinda for $85 million.
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Industry Issues
IN THE NEWS ... Riff Cold
Hollywood, Fla.-based LovePlantz decreasing its 25-ingredient juice that Miami-based HPP and bottling
announced a brand refresh, beverage to 8 ingredients, as well as facility Green Plant will be handling Brewed
including changing its name from
Chimp Food to LovePlantz and
completely removing the dry stevia
leaves. The company also announced
the production and fulfillment of
all of its products. Coffee opens
taproom
B
end, Ore.-based Riff Cold
Brewed Coffee, a new craft
beverage company founded
by veterans from Crux Fermentation
Project, Stumptown Coffee and
LinkedIn, has opened a 3,700 square-
foot taproom in the heart of Bend’s
emerging craft corridor.
Located in the Box Factory, a
recently renovated 100-year-old
mill building echoing Bend’s timber
heritage, Riff’s Taproom features a
custom designed two-barrel pilot
brewing system by Marks Design
and Metalworks out of Vancouver,
Wash. The unique pilot brewing
system enables Riff to produce small
batch experimental cold-brewed
coffees and get immediate feedback
from customers on the other side of

WHEY
the bar.
“This place is like a brewer’s
creative playground,” said Nate
Armbrust, Riff co-founder and

PROTEIN director of brewing and innovation,


in a statement. “Marks built an
incredibly beautiful and functional
pilot system that offers so much
flexibility. And, to get direct
feedback from customers within

Say “Hi” to a better drinkable protein 24 hours of brewing — unheard of.”


The Taproom’s one-of-a-kind
sculptural tap system includes
30 taps, each built with its own tower
Beverage systems are tricky for protein fortification. Nutritional and functional benefits to allow for flexibility and adaptability,
must balance with taste and visual appeal. Hilmar Ingredients’ applications team will pouring cold-brewed coffees, teas
and cold-brewed collaborations with
work with you to create the beverages your consumers want. friends in the craft brewing, kombucha,
cider, spirits and CBD spaces.
Hilmar Ingredients whey protein delivers: “This is the first space of its kind
devoted to cold brewed coffee,” said
Paul Evers, Riff’s chief executive officer
Excellent clarity and dispersibility
and co-founder. “We’re inspired by the
Heat stability for all processing methods possibilities within coffee and believe
there’s so much more we can do with it.”
Acid stability
The Riff Taproom offers a
Clean, neutral flavor contemporary food menu featuring
salads, sandwiches, grain bowls
and build-your-own cheese and
charcuterie boards. Riff’s approach
to brewing coffee cold allows for
more of coffee’s natural flavors and
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aromatics to come forward and


provide for some fun food pairing
opportunities, it says. Many of the
items featured on Riff’s food menu
Whey Protein Lactose  Milk Powder are inspired by, and sometimes
infused with, cold-brewed coffee. BI
Learn more at hilmaringredients.com or give us a call: 209.667.6076

10 | Beverage Industry | JANUARY 2019 | bevindustry.com


NWNA will achieve 25% Save Space and
recycled plastic in its Increase Throughput
packaging by 2021
N
estlé Waters North America in rPlanet Earth, the world’s first
(NWNA), Stamford, Conn., completely vertically integrated
announced that it will manufacturer of post-consumer
achieve 25 percent recycled plastic recycled PET.
across its U.S. domestic portfolio by NWNA also supports recycling
2021. The company plans to continue collection programs through
expanding its use of recycled organizations like Keep America
materials in the coming years, Beautiful, including an integrated
further setting an ambition to reach recycling education and awareness
50 percent recycled plastic by 2025. initiative for the 10,000 students affected
The company is expanding its by the Flint, Mich., water crisis.
relationship with key supplier, “Through long-term supplier
Plastrec (Joliette, Canada), and contracts and our commitment to
working with other suppliers, to supporting initiatives to improve
support the company’s ability to collection rates, we are helping to
nearly quadruple its use of food- stimulate a more robust recycling
grade recycled plastic, or rPET, in market, and unlock the potential of
less than three years. This comes a circular economy here in the U.S.,”
on the heels of Nestlé Waters’ Mercé said.
announcement last month about the Earlier this year, as a result of
expansion of its partnership with NWNA’s existing relationship with
CarbonLITE, as the rPET supplier rPET supplier Plastrec, the company
builds a third U.S. facility in the unveiled a new 100 percent rPET
Lehigh Valley area of Pennsylvania. Nestlé Pure Life bottle.
“We want to take the ‘single’ out In California, NWNA is leading
of ‘single-use’ bottles. Our bottles the charge in its use of recycled
were never meant to be thrown in the plastic: more than 42 percent of the
garbage — we carefully design them to plastic the company uses across all
be collected, recycled and repurposed,” brands sold in California is made
says Fernando Mercé, president and from rPET, it says. In fact, all single-
chief executive officer of NWNA, in a serve bottles of Arrowhead Brand
statement. “PET plastic is a valuable Mountain Spring Water and Nestlé
resource that, if recycled properly, can Pure Life Purified Water produced in
be used to create new bottles again and California are made with 50 percent
again. We’re proving that it can be done recycled plastic, it adds. Our High Capacity Spirals are in
by making bottles out of other bottles, “The planet has a problem
not ten years from now, but today.” with plastic pollution. If plastic is
response to our customers’ need to go
In its 2016 report titled “The going to survive as a packaging higher and handle more weight.
New Plastics Economy: Rethinking material it must demonstrate
the future of plastics,” the Ellen closed-loop capability,” said Mark The load capacity is 75 lbs. per linear foot of conveyor for
MacArthur Foundation found that Murray, executive director of the speeds up to 200 FPM. Our New Wide Trak Spirals have
most plastic packaging is used only environmental group Californians 36” wide slats and can provide an elevation change of up to
once, and that 95 percent of the Against Waste, in statement. 50 feet with only one drive.
value of plastic packaging material, “Nestlé Waters has embraced this
worth $80-120 billion annually, is responsibility by accelerating their use Multiple Entry and Exit Spirals These spirals allow the
lost to the economy. of recycled content over the next three loads to enter or exit the spirals at intermediate elevations.
In addition to the company’s years and their commitment to reach Our new induction and divert conveyors are individually
adjustable to match the spiral pitch, assuring a reliable entry
multi-year supplier agreements, 50 percent by 2025. Nestlé Waters is
and exit. For application assistance or more information, give
NWNA continues to make indirect setting the example that the rest of the
us a call or visit www.ryson.com.
investments in recycling infrastructure beverage industry must embrace.”
in the United States through its $6 This latest milestone is part of parent
million investment in the Closed company Nestlé SA’s broader ambition
Loop Fund. In municipalities such to develop a circular economy for
as Waterbury, Conn., the investment plastics, and to prevent packaging from
fund is supporting enhanced recycling ending up as litter. The global company
programs with a goal of increasing recently announced that it has signed 300 Newsome Drive • Yorktown, VA 23692
the current city recycling rate from the New Plastics Economy Global Phone: (757) 898 -1530 • Fax: (757) 898 -1580
6 percent to 25 percent by 2020. Commitment to work collectively on VERTICAL CONVEYING SOLUTIONS
Just recently, the Closed Loop Fund solutions that address the root causes of
announced a $1.5 million investment plastics waste and pollution. BI

bevindustry.com | JANUARY 2019 | Beverage Industry | 11


Industry Issues
IN THE NEWS ... PepsiCo
New York-based New Mountain which Vestar will lead a new portfolio company since 2011.
Capital and Vestar Capital Partners investment in Chicago-based The agreement closed at the completes
Information Resources Inc. (IRI).
announced the signing of a
definitive agreement through IRI has been a New Mountain
end of 2018, terms were not
disclosed. acquisition of
SodaStream
P
epsiCo Inc., Purchase, N.Y.,
has completed its acquisition
of SodaStream International
Ltd., Airport City, Israel, as
previously announced, acquiring all
outstanding shares for $144 a share.
“I couldn’t be prouder or more
excited to welcome SodaStream to the
PepsiCo family,” said Ramon Laguarta,
PepsiCo chief executive officer (CEO),
in a statement. “With its customizable
options, SodaStream empowers
consumers to personalize their preferred
beverage in an environmentally friendly
way and provides PepsiCo with a
significant presence in the at-home
marketplace. Together with SodaStream,
I’m confident we can accelerate progress
on our shared goal of curbing plastic
waste and building a more sustainable
future.”
The transaction is another step in
PepsiCo’s Performance with Purpose
journey, supporting health and
wellness through environmentally
friendly, cost-effective and fun-
to-use beverage solutions, and
the company’s Beyond the Bottle
strategy to form a more sustainable
beverage ecosystem, it says.
PepsiCo’s research and development
capabilities, global reach, design
and marketing expertise, combined
with SodaStream’s differentiated
and unique product range position
SodaStream for further expansion and
breakthrough innovation, it adds.
PepsiCo’s Performance with
Purpose initiative is the company’s
fundamental belief that the success
of the company is inextricably
linked to the sustainability of the
world around us, it says.
Daniel Birnbaum, SodaStream CEO
and director, said: “We are thrilled to
become part of PepsiCo and join its
diverse and talented team. SodaStream
was founded to bring healthy,
convenient and environmentally
friendly beverage options to
consumers around the world — and
PepsiCo will help us deliver and
expand on this mission. With some
of the world’s leading marketing and
R&D teams, and access to new markets
and channels, we are excited to grow
hand-in-hand with PepsiCo in the
months and years to come.” BI

12 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Industry Issues
IN THE NEWS ... Coca-Cola,
Los Angeles-based First Beverage Group
announced the addition of two beverage
of Brown-Forman Corp.; and Amy Hoopes,
president of Wente Family Estates.
appointed Tom Baril as vice president of
sales. In this new role, Baril will work to
Ioniqa
industry veterans to its Board of Directors:
Jill Jones, former executive vice president The GreatVines team, St. Helena, Calif.,
deliver sales management tools within the
industry.
Technologies
work to support
recycling efforts

T
he Coca-Cola Co.,
Atlanta, announced a new
agreement extending a
loan to The Netherlands-based
Ioniqa Technologies to facilitate
the development of Ioniqa’s
proprietary technology to produce
high-grade, recycled PET content
from hard-to-recycle PET waste.
The agreement is designed to
accelerate the development and
deployment of high-grade recycled
content PET for use in bottles used
by The Coca-Cola Co.
This investment supports the
company’s global vision to work
toward a World Without Waste,
which includes a goal to create
packaging made of at least
50 percent recycled material by
2030. The new technology supports
the circular economy for plastics
by allowing packages such as
colored PET bottles that could
have been excluded from certain
recycling streams to be recycled
into food-grade quality packaging.
The agreement is intended to
accelerate scale-up of Ioniqa’s
recycling technology for PET.
Ioniqa has developed a proprietary
recycling technology that is able
to convert hard-to-recycle PET-
containing waste like colored
bottles into purified polymer
building blocks that can be later
reformed into high quality PET. The
technology has been validated at
the demonstration scale
with value chain partners, and
a 10-kMT industrial plant is under
construction in The Netherlands
for commissioning in 2019.
“Our investment in new and
pioneering recycling technologies
is an opportunity for significant
movement toward closing the loop
and creating a circular economy
for PET,” said Robert Long, chief
innovation officer for The Coca-
Cola Co., in a statement. “We
plan to continue investment in
developing the right partnerships
and initiatives — like with Ioniqa
— to support our vision of a World
Without Waste.” BI

14 | Beverage Industry | JANUARY 2019 | bevindustry.com


House of Krones

Digitalization Process Bottling and Intralogistics Lifecycle


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Category Focus By Jessica Jacobsen

Innovation key to
juice’s future
Super-premium ALTHOUGH A STAPLE WITHIN THE NORTH AMERICAN BEVERAGE MARKET, THE
juice and juice drinks category has been challenged as other beverage categories
juices outperform have emerged as go-to options for consumers in terms of hydration and
category refreshment. Chicago-based Mintel highlights the obstacles that the juice market
has faced against these other categories in its June 2018 report titled “Juice and
Juice Drinks – US.”
“Competition from other drinks is hurting juice juice drinks market, Gary Hemphill, managing director
sales,” the report states. “Consumers do not have as of research for New York-based Beverage Marketing
strong associations with juice as they do with other Corporation (BMC), adds that some sub-segments are
beverages. For example, if a consumer wants hydration, adding value to the category.
he’ll likely choose water over juice. “Sales of juices and juice drinks continue to be soft,”
“Consumers don’t necessarily have negative he says. “While there are some bright spots particularly
associations with juice but juice does not adequately in the high end of the market, the category has
satisfy enough key occasions/need states,” the report experienced weak performance for a number of years.”
continues. “Juice brands need to focus on capturing
specific SUGAR COMPLEX
Shelf-stable bottled juices occasions.” Noting that the juice and juice drinks market is
In its report, experiencing combatants on numerous fronts, Mintel’s
(Categories)
the market report points to sugar concern from consumers as one
% CHANGE VS. % CHANGE VS. research firm of the culprits.
DOLLAR SALES UNIT SALES
PRIOR YEAR PRIOR YEAR estimates that “Consumer concerns over the amount of sugar in
Fruit drinks $2,363,735,002 0.3 1,382,043,869 0.2 total juice sales juice is perhaps the largest issue impacting the juice
Cranberry cocktail/
will reach an market,” the report states. “Forty-one percent of
$1,004,590,445 -0.6 385,650,539 -0.8 estimated consumers who don’t buy 100 percent fruit juice say the
juice drinks
Apple juice $905,225,116 -0.6 383,630,035 1.4 $19.5 billion, high amount of sugar in the juice prevents them from
which making a purchase. Unfortunately, because the sugar in
Tomato/vegetable $449,616,649 -1.9 156,365,518 -1.7 represents a 100 percent fruit juice is natural, 100 percent fruit juice
juice/cocktail
Lemonade $383,222,677 0.9 245,855,631 -1.1 1.2 percent brands can’t just lower the total amount of sugar in the
decline from drinks. Instead, juice brands need to diversify product
Fruit juice blends $319,248,467 6.9 111,818,705 7.1
five years ago. offerings and identify new opportunities through
Cranberry juice/ “Most of the product innovation.”
$279,190,220 2.3 77,157,549 2.8
cranberry juice blends
declines within Chicago-based Euromonitor International also
Orange juice $246,307,807 -4.3 104,628,163 -3.4
the market highlights the obstacle that sugar content has posed
Grape juice $225,330,127 -2.9 64,639,883 -5 are due to the to the juice industry in its February 2018 report titled
Lemon/lime juice $197,362,853 3 101,782,318 2.6 falling sales “Juice in the US.”
Sparkling juice $155,075,050 -6.4 59,133,766 -11.1 of 100 percent “Like many other soft drink areas in recent years,
juice,” the juice has struggled to overcome challenges associated
Cider $114,931,501 -2.8 37,663,452 -1
report states. with high sugar content,” the market research firm
Other fruit juice $103,401,235 -2.6 36,891,979 -0.3
“Sales of bottled states. “While consumers remain consciously aware
Prune/fig juice $101,676,959 -8.5 21,632,797 -8.2 smoothies are of the health benefits juice and its fruit parts can offer,
Cherry juice $61,575,889 -1.1 13,443,303 0.2 now also falling consumers increasingly realize that not all juices are
Grapefruit cocktail $48,547,025 -12.8 19,583,592 -16 after years of created equal.”
growth, and Noting that sugar content is a top product attribute
Pineapple juice $42,371,335 5.8 12,035,583 6.3
while juice impacting the juice and juice drinks category’s
Grapefruit juice $35,464,550 -6.3 12,367,775 -6.6
drink sales are narrative, BMC’s Hemphill highlights that the industry
Juice and drink increasing, total is seeking to address these concerns.
$28,464,796 15.5 13,837,128 4.7
smoothies
growth, will be For example, the Washington, D.C.-based Juice
Fruit nectar $14,651,404 -11.7 7,733,832 0.3 minimal.” Products Association launched sipsmarter.org, a
Apricot juice $142,546 20.4 57,903 20.2 Also website dedicated to educating consumers about
Total $7,089,102,240 -0.3 3,251,113,854 -0.2 recognizing the the science-backed health and nutritional benefits of
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, mass merchandisers, gas and challenges of 100 percent juice.
convenience stores, military commissaries, and select club and dollar retail chains for the 52 weeks ending Nov. 4, 2018. the juice and “More than 80 percent of Americans do not eat the
continued on page 18

16 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Category Focus
continued from page 16
recommended amount of fruits and
vegetables. One hundred percent juice is Orange juice and
an easy, tasty way to incorporate more fruit drink consumers
fruits and vegetables into your diet.” (*Index by income and race 2017)
said Diane Welland, Registered Dietitian
for the Juice Products Association, in
a statement at the time of the website HOUSEHOLD FRUIT
INCOME ORANGE JUICE DRINKS
launch. “We hope that the Sip Smarter
website and campaign will educate $75,000+ 98 84
consumers seeking facts about juice and $50-79,999 99 97
inspire them to feel good about enjoying $40-49,999 102 107
juice as part of a balanced diet.
$30-39,999 102 110
“Research shows that people who

Enamel Rater III


drink 100 percent juice have higher $20-29,999 99 115
intakes of whole fruit and a better $10-19,999 106 121
overall diet quality compared with <$10,000 105 126
The new WACO Digital Enamel Rater III for fast, accu- non-juice drinkers,” Welland continued.
rate measurement of the enamel coating inside food “We know that despite the positive
RACE ORANGE JUICE FRUIT
science, there’s some confusion and
AND BEVERAGE CANS &EATURES INCLUDE CAN CONTACT criticism out there about juice. We want
DRINKS
and fill height sensors. Operates in industry standard people to have easy access to science-
White 94 91
4-second mode or user-selectable mode. Simple backed information to address their Black 120 136
foolproof self-test verifies correct operation. RS232 questions ranging from nutrition and Asian 83 78
AND 53" PORTS FOR EASY DATA TRANSFER &AX OR EMAIL FOR health benefits to sugar content and Hispanic 118 115
processing.” origin/descent
more information now.
On the Sip Smarter website, Other 92 103
WILKENS-ANDERSON COMPANY consumers can utilize the interactive * The propensity, relative to the total population, to
4525 West Division St., Chicago, IL 60651 “Find Your Juice Match” tool, which consume a specific brand (mean = 100).
Source: Beverage Marketing Corporation; Scarborough Research
   s &AX    informs them about the potential
WACO WACOLABCOM s WWWWACOLABCOM health benefits that are associated with Waters North America, also recognized
each type of juice. Additionally, more the potential of lightly sweetened juice
than 60 recipes are published in which drinks. This past summer, the sparkling
Clean Liquid Systems LLC juice can be used outside of beverage water brand launched Perrier & Juice
7422 Kearney Hill Ln. consumption, it says. Consumers Drink, a line extension that combines
also can read information from policy Perrier’s original carbonated mineral
Spring, TX 77389 Ph:713-253-0100 influencers and health professionals, water with splashes of natural fruit
[email protected] including the most recent peer-reviewed juices, the company says. The 45-calorie
research on juice and a Registered beverage is available in three flavors:
[email protected] Dietitian toolkit. Strawberry & Kiwi, Pineapple & Mango
Juice drinks manufacturers also are and Peach & Cherry.
finding more ways to ease consumers In its report, Mintel notes how less-
• High Purity liquid filters & RO membranes concerns about sugar content. In sweet juices could serve as a growth
• PRFE media and PFA hardware mid-2018, Simply Beverages, a brand opportunity for the category.
of Atlanta-based The Coca-Cola Co., “Twenty-seven percent of consumers
• Carbon blocks for taste & chemical removal launched a new Simply Light line in say that most juice is too sweet but this
• Pleated & meltblown cartridge four flavors: Simply Light Orange Pulp increases to nearly half of consumers
Free, Simply Light Orange with Calcium who want low-sugar juice and don’t
• High capacity bags and housings & Vitamin D, Simply Light Lemonade, buy 100 percent fruit juice,” the market
and Simply Light Lemonade with research firm states. “Since sugar
• Sanitary Stainless Steel housings Raspberry. content is a common reason why
• Stainless mesh filters Simply Light beverages are a direct consumers don’t buy juice, there may
response to those who want to enjoy be an opportunity for juice brands
orange juice or lemonade, but with less to connect with lapsed juice buyers
We cross most major brands. sugar and fewer calories than regular through juices with a less-sweet
Quality products at competitive prices. juice drinks, the company says. flavor profile. Fruit juice blended with
“Today’s consumers want a variety vegetables, coconut water, and even
of beverage options that help them spices/herbs may appeal to consumers
maintain a well-rounded, healthy who want less-sweet juices.”
lifestyle without sacrificing taste, Camden, N.J.-based The Campbell
which is why Simply is a leader in the Soup Co. also is addressing the dearth
category,” said Kelly Marx, Simply of less sweet juices with the launch of
Beverages brand director, in a statement V8+Hydrate. The plant-based beverage
at the time of the launch. line uses sweet potato juice and contains
Perrier Sparkling Mineral Water, a one full serving of vegetables with no
brand of Stamford, Conn.-based Nestlé artificial sweeteners, the company says.

18 | Beverage Industry | JANUARY 2019 | bevindustry.com


Packaged in 8-ounce cans, the 45-calorie beverage premium juice volume decreased by 7.8 percent,”
comes in three flavors: Strawberry Cucumber, Coconut BMC states. “But in 2010, they grew by 2.8 percent. In
Watermelon and Orange Grapefruit. 2011, the recession loomed further back in the rearview
In Euromonitor’s report, the market research firm mirror, as volume grew by 7.9 percent. The next three
details that the implementation of the new Nutrition years saw robust double-digit growth. 2015 and 2016’s
Facts label, which has been delayed until January growth rates were a still-healthy 9.5 percent and 8
2020, could influence the future of juice product percent, respectively. In 2017, growth decelerated to
development. 4.3 percent. On an anticipated 3.7 percent [compound
“Most consequential will be the addition of added annual growth rate] (CAGR), super-premium juice
sugars on nutrition labels, which will play a defining volume should reach 185 million gallons in 2022.”
role in helping to add validity to the term ‘healthy,’” the A part of the broader super-premium juice
report states. “Already, Kraft Heinz has removed added revolution, organic varieties have expanded
sugars from a line of its immensely popular juice brand juices’ reach in the marketplace. However,
Capri Sun, showcasing the potential shockwaves the analysts caution that the reach likely will be
new labels may send through the juice market.” limited due to price constraints.
“Organic is a net positive for the category
SUPER SOLUTIONS but organic products are more expensive,
In addition to less-sweet options, super-premium juices which may be limiting their growth,”
have shown to have a positive impact on the category. Hemphill says.
“Super-premium juices and drinks are a bright spot In late 2017, Lakeville-Middleboro, Mass.-
in the overall fruit beverage market,” BMC’s Hemphill based Ocean Spray Cranberries Inc. added
says. “They are growing while the overall category to the organic juice market with the release
continues to decline.” of Ocean Spray Organic 100% Juice Blends.
In BMC’s August 2018 report titled “U.S. Fruit Available in three flavors — Cranberry,
Beverages through 2022,” the market research firm Cranberry Apple and Cranberry Blueberry

>>
Simply Beverages launched a new Simply Light line in four
details that following a decline in 2009, the sub-segment — each 8-ounce glass contains the equivalent
flavors: Simply Light Orange Pulp Free, Simply Light Orange with
grew in the eight subsequent years. of one cup of fruit with 100 to 130 calories, Calcium & Vitamin D, Simply Light Lemonade, and Simply Light
“In 2009, no doubt due to the weak economy, super- depending on the flavor, the company says. Lemonade with Raspberry. (Image courtesy of The Coca-Cola Co.)
continued on page 20

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Category Focus
continued from page 19
Beverage-makers also are finding new ways in which time of the announcement. “With our expansion
to position organic juices. For example, 4Pure Inc., into functional beverages, we are putting 24 years of
Cumberland, Maine, launched a new line of organic experience to work to authentically expand what cold-
lemonades in three flavors: Original, Blueberry and pressed, high-pressure processed juice can deliver. Our
Raspberry. Each 4Pure Organic Lemonade is crafted new functional smoothies combine our cold-pressed
from real lemon juice, peak-season fruit purees and juices with ingredients with functional benefits like
is lightly sweetened with sustainably tapped New probiotics, fiber and plant-based protein.”
England maple syrup, the company says.
Cold-pressed juice brand Evolution Fresh, a wholly TODAY’S JUICE CONSUMERS
owned entity of Seattle-based Starbucks Corp., also As beverage manufacturers explore the potential of less
recognizes the impact that organic products are having sweet and organic juice offerings, analysts highlight the
on the juice market. The brand doubled down on its importance of understanding what the juice consumers
mission to source quality produce by announcing a of today look like.
commitment to offering 100 percent organic products In BMC’s report, the market research firm pinpoints
this year. Evolution Fresh works directly with farmers data from a survey conducted by Scarborough Research
to source organic produce, it says. about the incidences of juice consumption across
The brand commitment to organic could be seen various demographics.
from its 2018 juice smoothie releases: Evolution Fresh “[F]or orange juice users, high school graduates have
Daily Probiotic Smoothies and Complete Smoothies. coverage of 33.5 and composition of 32.9,” it states.
The organic smoothies feature an amalgamation of “That simply means that diploma holders comprise
cold-pressed fruit and vegetable juice with probiotics, 33.5 percent of orange juice users in the U.S. And it
coconut milk and other functional ingredients. These also signifies that 32.9 percent of graduates drink these
functional smoothies allow for expansion beyond beverages.”
super-premium juices to include premium functional Additionally, the report highlights that fruit drinks
>>

Perrier Sparkling Mineral Water launched Perrier & beverages, the company says. are consumed by 25.5 percent of the adult population
Juice Drink, a line extension that combines Perrier’s
original carbonated mineral water with splashes of “We know a growing number of people are looking and based on a population-neutral basis, women are
natural fruit juices, the company says. (Images courtesy for more from their juice,” said Ryan Ziegelmann, more likely than men to be fruit drink consumers.
of Nestlé Waters North America) president of Evolution Fresh, in a statement at the “Fruit drink consumers tend to be young, but

20 | Beverage Industry | JANUARY 2019 | bevindustry.com


not as young as some other beverage ■ 73 percent of Gen X men drink
categories,” the report states. “In 2017, juice with breakfast
28.6 percent of 18- to 24-year-olds ■ 60 percent of Gen X men like
consumed fruit drinks, 12 percent grape-flavored juice
more than the 25.5 percent average
among all adults. Whereas orange While men already drink more
juice finds a pocket of popularity juice than women, they also are more
among the oldest adults, fruit drink open to the nutritional benefits that
consumption indexes generally decline juice offers, particularly because they
with each advancing age cohort. Still, are more aware that there is room
adults over 65 are only 2 percent less for improvement in their health, the
likely than the average to imbibe fruit company added.
drinks. Seniors have an index of 106 "The juice category and shopping
for orange juice consumption.” behaviors are changing, and we
In Mintel’s report, the market knew it was time to disrupt the
research firm suggests developing category by making a bold move
juice products that appeal to the to reinvigorate the juice aisle," said
iGeneration, who are just starting to Lesya Lysyj, Welch's president of the
enter the career job market. U.S., in a statement at the time of the
“Juice brands can bring excitement announcement. "After comprehensive
to the juice market and attract research, we discovered that the
new consumers through product market potential is with
innovation,” the report states. “iGens in Gen X men, a demographic that loves
particular are interested in trying new juice and has emerged as a primary
juice products, especially juices with grocery shopper. The Tough as Grapes
added functionality such as being high campaign solidifies our commitment
in electrolytes or promoting relaxation.” to the modern grocery shopper, while
For instance, Mintel’s report championing the tough antioxidants in
featured data that asked 1,552 Internet our Concord grapes."
users aged 18 and older who had Another important demographic
purchased any juice type in the past for juice are parents, particularly
three months to select the following millennial parents.
juice drinks that they would be “Parents out-purchase nonparents
interested in trying. Sixty percent of for every juice type with millennial
iGens expressed an interest in fruit parents in particular being an
and vegetable blends, 2 percentage- important consumer group for
points higher than all respondents. juice drink brands,” Mintel’s report
Also appealing to iGens were energy- states. “Juice brands need to develop
providing juices in which 51 percent of products that satisfy the needs of
the demographic named the product millennial parents. For example, many
attribute, 11 percentage-points higher of the growing kids’ juice brands are
than all respondents for the same organic and carry low-sugar claims.”
product attribute. BMC’s Hemphill notes that juices
Supporting the energy trend, positioned toward children have
Concord, Mass.-based Welch’s shown slight achievement. “Dedicated
debuted its Sparkling Plus Energy kids’ juice brands have had modest
in two flavors: Sparkling Grape and success,” he says. “Tried and true
Sparkling Fruit Punch. The line is brands like Juicy Juice and others are
made from sustainably farmed Welch’s being joined by more premium options.
juice and natural energy from organic Kids drink these brands as well as [the]
coffee extract, the company says. mainstream juice brands their parents

12oz Sleek
Welch’s also sees potential in are drinking. But some parents limit
targeting one of the quieter generations: kids’ juice intake due to sugar.”
Generation X. With the launch of its Given the mixed bag of variables
marketing campaign Tough as Grapes, impacting the juice and juice
the juice manufacturer is focusing on drinks market, BMC is predicting Carbonated Sodas
Gen X men through a “tough and gritty” the juice and juice drinks market
look at how Welch's Grape Juice is made will contract during the next five Functional Beverages
with one of the world's “toughest” years with a CAGR of -1.3 percent.
antioxidants, the company says. “While not a cause for celebration, Sparkling Waters
The brand strategy is backed by this would represent the category’s

[email protected]
research on Gen X males where best performance since 2001-2006’s
Welch's uncovered: compound annual growth rate
■ 59 percent of Gen X men report they
are the primary grocery shopper
(CAGR) of -0.9 percent,” the report
states. BI (973) 601-8484
bevindustry.com | JANUARY 2019 | Beverage Industry | 21
ROOT OUT ROOT BEER FLAVORED WHISKY
Sure Shots Spirits LLC, Southbury, Conn.
Telephone: 908/353-1234
VANILLA OAK KOMBUCHA Internet: rootoutwhisky.com
Townshend’s Tea Co., Portland, Ore. Distribution: Select markets and online
Telephone: 503/235-3656
Internet: brewdrkombucha.com
Distribution: National
ADULT ROOT BEER FLOAT
Sure Shots Spirits LLC launched Root Out, a root
A WINTER FAVORITE beer flavored whisky. Root Out is a blend of
Back by popular demand, Brew Dr., a brand root beer flavoring with a Canadian blended
of Townshend’s Tea Co., released its Vanilla whisky that is aged for four years in American
Oak Kombucha for the winter season, oak bourbon barrels, giving it a rich root beer
the company says. The limited-edition flavor with a hint of vanilla, the company says.
kombucha flavor features a combination The whisky is distributed by Dozortsev & Sons
of fresh-scraped organic vanilla bean and Enterprises, Elizabeth, N.J. and is available in
oak steeped in a kettle with black tea, it select markets including retailers in New York,
adds. Vanilla Oak is available in 14- and New Jersey and Florida, for a suggested retail
32-ounce bottles through March. price of $25.99 for a 750-ml bottle.

CURB YOUR HUNGER


Fairlife LLC, a division of The Coca-Cola Co., launched fairlife
FAIRLIFE SMART SNACKS smart snacks, a collection of snack-sized beverages
The Coca-Cola Co., Atlanta designed to curb hunger in between meals, the company
Telephone: 800/643-8151 says. Available in Rich Chocolate, French Vanilla and
Internet: fairlife.com Creamy Strawberry, each flavored variety offers 15 grams
Distribution: Select markets and online of protein and 5 grams of dietary fiber in each 8-ounce
bottle, it adds. The fairlife smart snacks deliver
40 percent of the recommended daily value of calcium,
contain no artificial preservatives, and are free of lactose
and gluten. The nutrition shakes are available at select
Walmart retailers, on Amazon.com, and in select retailers
nationwide. Each 8-ounce bottle has a suggested retail
price of $2.29 and a 12-pack retails for $24.99.

NUBRAIN CALIFORNIA CANNABIS


BARREL RESTED PORTLAND RUM NOOTROPICS BEVERAGE
Sebago Lake Distillery, Gardiner, Maine Tesla Nootropics Inc., Dover, Del.
Telephone: 207/808-0379 Telephone: 697/014-3512
Internet: sebagolakedistillery.com Internet: teslanootropics.com
Distribution: Select markets Distribution: Select markets

CARAMEL GOODNESS
Sebago Lake Distillery introduced its newest product:
Barrel Rested Portland Rum. The spirit features
oaky flavors similar to old bourbon, some spici-
ness from the rye that formerly inhabited the
barrels, as well as the full mouthfeel and caramel
notes similar to a 100 percent pot still rum, said
Dan Davis, head distiller at Sebago Lake Distillery.
Barrel Rested Portland Rum joins the company’s
lineup of three other rum flavors: Original, KOPI
Coffee and Spider Island. The rums are available
at select retailers in the New England area.
HAVE A FUNCTIONAL DAY
Tesla Nootropics Inc. launched Nubrain California Cannabis, a functional
feel-good beverage, the company says. Nubrain contains 10 mg of raw
organic cannabis extract and the Neurocellin-patented plant stem cell
technology, it adds. The cannabidiol beverage is available in select
TO SUBMIT A NEW PRODUCT FOR CONSIDERATION,
markets in 12-ounce PET bottles and 330-ml cans for suggested retail
VISIT BEVINDUSTRY.COM/NEWBEVERAGEPRODUCTSUBMISSION prices of $2.50 and $2.19, respectively.

22 | Beverage Industry | JANUARY 2019 | bevindustry.com


CRATER LAKE ROCK & RYE WHISKEY
Crater Lake Spirits, Bend, Ore.
Telephone: 541/318-0200
THE SPIRIT OF SPERRY HUCKLEBERRY VODKA Internet: craterlakespirits.com
Whistling Andy Distillery, Bigfork, Mont. Distribution: Select markets
Telephone: 406/837-2620
Internet: whistlingandy.com
Distribution: Select markets
FEEL LIKE A ROCKSTAR
Crater Lake Spirits by Bendistillery released
its newest product: Crater Lake Rock &
HUCKLEBERRY SPIRIT Rye Whiskey. Rock & Rye is crafted with
Whistling Andy Distillery released The Spirit of Bendistillery’s rye whiskey, 100 percent
Sperry, a huckleberry flavored vodka. The Spirit rye grain and pure water from the Cascade
of Sperry is a gluten-free corn vodka flavored with Mountains, combined with rich flavors of dark
Montana huckleberries, Douglas fir tips and shiso cherry, blood orange and bitters, the company
leaves, the company says. The flavored vodka is says. Packaged in a 750-ml bottle, Rock &
available in select markets for a suggested retail Rye features a 35 percent alcohol-by-volume
price of $31 for a 750-ml bottle. content and is available in select markets.

A BOOM OF ENERGY
Tempire Group, manufactured under a license
BOOM BOOM ENERGY DRINK
from Argo Food & Beverage International, introduced
Tempire Group, Fort Worth, Texas
its new beverage, Boom Boom Energy Drink.
Telephone: 817/808-2129
Boom Boom is designed to provide a boost of
Internet: tempiregroup.com
energy within a few minutes of ingestion for
Distribution: National
athletes, college students, businessmen and
other professionals, the company says. The
functional beverage is available nationwide in
250- and 355-ml slim cans.

MOTHER MATCHA
Mother Matcha LLC, Berkeley Calif.
Telephone: 914/584-6788
Internet: mothermatcha.com
Distribution: Select markets
Ingredients: Original Matcha:
SPARKLING ICE CRANBERRY FROST Coconut crème, water, matcha tea,
Talking Rain Beverage Co., Preston, Wash. honey and monkfruit extract.
Telephone: 800/734-0748
Internet: sparklingice.com
Distribution: National

CARBONATED CRANBERRY
Sparkling Ice, a brand of Talking Rain Beverage Co.,
introduced its latest flavor: Cranberry Frost. Cranberry MOTHER MAY I?
Frost features flavors of sweet cranberries and ginger, Mother Matcha LLC released its self-titled ready-to-drink (RTD) matcha
the company says, The limited-edition flavor comes lattes with coconut milk. Packaged in a 295-ml glass bottle, Mother
bottled in a clear, frosted label and features a mix of Matcha is available in three flavors: Original Matcha, Yosemite
cranberries and ginger inside the brand’s signature Chocolate and Berkeley Chai. The RTD beverages are available in
3-D ice cube on the packaging. select markets for a suggested retail price of $4.99 for a bottle.

bevindustry.com | JANUARY 2019 | Beverage Industry | 23


CUBED3 CBD BEVERAGE
UNIQUE Inc., Simi Valley, Calif.
Telephone: 818/280-6327
Internet: uniqueenergy.com
Distribution: Select markets

WILD TONIC DANCING NAKED HARD JUN KOMBUCHA


Good Omen Bottling LLC, Cottonwood, Ariz.
Telephone: 928/634-5434 CBD WITH A TWIST
Internet: wildtonic.com UNIQUE Inc., launched its new line of full-spectrum
Distribution: Select markets CBD beverages: CUBED3. CUBED3 functional CBD
beverage is designed to relax the body while enhancing
cognitive energy and focus through full-spectrum CBD,
DANCE IT OUT containing as much as 15 to 25 mg of CBD, reishi
Good Omen Bottling LLC’s Wild Tonic released its latest and green tea, the company says. Being released in
hard kombucha product: Wild Tonic Dancing February, the CBD beverage is available in Tropical
Naked, a 7.6 percent alcohol-by-volume Hard Twist, packaged in 12-ounce cans and can be found
Jun Kombucha. Dancing Naked features notes in select retailers throughout the West Coast, Hawaii,
of Zinfandel and is fermented with honey, the Colorado and New York areas for a suggested retail
company says. Like Wild Tonic’s other products, price of $5.55 for a can.
Dancing Naked also is fermented with certified
organic fruit, herbs and botanicals. Dancing Naked
is available in 750-ml glass bottles in select
markets for a suggested retail price of $23.99.

FLAVORED HYDRATION
QKC LLC is launching Hoist Electrolyte Water in four
HOIST ELECTROLYTE WATER
flavors: Watermelon, Strawberry Lemonade, Dragon
QKC LLC, Cincinnati
Fruit and Orange. Available starting Feb. 1, Hoist is
Telephone: 513/207-8855
a blend of electrolytes, carbohydrates and water. The
Internet: drinkhoist.com
16-ounce bottles will be available in select markets
Distribution: Select markets
for a suggested retail price range of $1.99-$2.49.

PLANET OAT OATMILK


HP Hood LLC, Lynnfield, Mass.
Telephone: 617/887-3000
Internet: drinkplanetoat.com
KNAPPOGUE CASTLE IRISH WHISKEY
Distribution: National
Castle Brands Inc., New York
Telephone: 800/882-8140
Internet: knappoguewhiskey.com
Distribution: Select markets

MATURING SPIRIT
Knappogue Castle, a brand of
Castle Brands Inc., launched a 12 Year Old
Single Malt Irish Whiskey, the first of its
new Cask Finish Series. The whiskey is
matured in bourbon barrels for a minimum
of 12 years, then further aged in casks
from the Bordeaux winery, the company
says. Knappogue Castle Irish Whiskey
is made from malted barley, distilled in
copper pot stills and bottled at 46 percent
alcohol by volume. The whiskey is available OATMILK INSPIRATION
for a limited-time in select markets for a Planet Oat, a brand of HP Hood LLC, launched Plant Oat Oatmilk in four flavors:
suggested retail price of $80. Original, Extra Creamy, Vanilla and Dark Chocolate. Plant Oat is a full-bodied
milk alternative that is naturally sweet and boasts nutritional benefits from the
oats, the company says. The dairy alternative also is soy free, gluten free, nut
free and non-GMO, it says. Available in 52-ounce cartons, Plant Oat is available
TO SUBMIT A NEW PRODUCT FOR CONSIDERATION, nationwide in select retailers including Kroger, Shaw’s and Amazon Fresh, for a
VISIT BEVINDUSTRY.COM/NEWBEVERAGEPRODUCTSUBMISSION suggested retail price of $3.99.

24 | Beverage Industry | JANUARY 2019 | bevindustry.com


LUCKY LIPS EXTRA AÑEJO TEQUILA
Suerte Tequila, Boulder, Colo.
Telephone: 970/ 963-4873
Internet: drinksuerte.com
KNOB CREEK TWICE BARRELED RYE
Distribution: Select markets
Beam Suntory Inc., Chicago
Telephone: 312/964-6999
Internet: knobcreek.com
Distribution: National

A TOUCH OF SWEETNESS
Knob Creek Distillery, a brand of Beam Suntory Inc., LICK-YOUR-LIPS GOOD
released a new whiskey offering: Knob Creek Suerte Tequila released its annual, limited-edition
Twice Barreled Rye. Knob Creek Twice Barreled extra añejo tequila: Lucky Lips. Lucky Lips
Rye features Knob Creek Straight Rye Whiskey, features a strong oak presence with hints of vanilla,
secondarily finished in new, level four charred cinnamon, honey and date, the company says. It
oak barrels, the company says. The expression also features a golden hue that is a result of the
presents rich and savory notes of the company’s premium tequila aging in charred American white
straight rye whiskey, mingled with robust oak oak whiskey barrels for eight years, it adds. The
and a touch of sweetness from the double barrel- limited-edition tequila is packaged in a 750-ml
ing process, it adds. Available nationwide, Knob bottle and is available in select markets for a
Creek Twice Barreled Rye has a suggested retail suggested retail price of $109.99.
price of $44.99 for a 750-ml bottle.

JOYBIRD WELLNESS CBD BEVERAGES


ENJOY THE FEELING
Joybird Wellness, Los Angeles Joybird Wellness launched its self-titled line of full spectrum
Telephone: 877/360-8352 Ext. 101 cannabidiol (CBD) beverages in three flavors: Apple Cranberry,
Internet: drinkjoybird.com Orange Tangerine and Mixed Berries. Packaged in 12-ounce PET
Distribution: Select markets and online bottles, Joybird beverages contain 8 mg of CBD, using domestic
and organic hemp, the company says. With a shelf life of eight
months, the wellness beverages are non-GMO, vegan, and
soy, diary and gluten free, it adds. Available in select markets,
including specialty retailers in Los Angeles and New York, Joybird
Wellness CBD beverages have a suggested retail price of $7.95,
and also are available for purchase through the company’s website.

GROW RAW ORGANIC LACTO FERMENTED JUICES


Rye Fresh Inc., Piscataway, N.J.
Telephone: 917/763-2296
Internet: growraworganic.com
Distribution: Select markets

MAGGIE’S FARM PINEAPPLE RUM


Maggie’s Farm Distillery, Pittsburgh
Telephone: 412/709-6480
Internet: maggiesfarmrum.com
Distribution: Select markets

FARM-FRESH FRUIT
Maggie’s Farm Distillery introduced its newest spirit:
Pineapple Rum, which is infused with fresh, whole
pineapples. Maggie’s Farm Pineapple Rum uses a
white rum that is vapor-infused with pineapple bark CERTIFIED HEALTHY
using a gin basket, and a dark rum component that Rye Fresh Inc. introduced its line of cold-pressed beverages: Grow Raw Organic
is macerated with fresh pineapple meat for four Lacto Fermented Juices. Packaged in 200-ml glass bottles, Grow Raw juices are
weeks, the company says. The batches are then 100 pure juice, and contain no sugar, preservatives or additives, the company
blended together and mellowed before bottling, says. The beverages also are USDA certified Organic, Non-GMO Project Verified
it adds. The 750-ml bottle features a 40 percent and BPA free. Available in select markets, Grow Raw Organic Lacto Fermented
alcohol-by-volume content and is available in Juices come in six flavor varietals: Beet, Beet & Celery, Carrot, Pickle, Broccoli,
select markets for a suggested retail price of $40. and Apple & Beet.

bevindustry.com | JANUARY 2019 | Beverage Industry | 25


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Cover Story By Barbara Harfmann

The
to success
Coca-Cola completes
historic bottling initiative

AT A GLANCE
North American refranchised
bottling network finalized EMBLAZONED ON A BEVERAGE DELIVERY TRUCK OR IN-STORE, THE ICONIC
Oct. 30, 2017
Coca-Cola logo, originally invented by bookkeeper Frank Robinson in 1886,
No. of independently owned
local bottling partners has evolved into one of the most recognizable symbols in the world. Today,
68 The Coca-Cola Co., Atlanta, offers much more than carbonated soft drinks (CSDs)
Renew our Products to consumers. Distributed in more than 200 countries, the beverage giant’s
800+, including 250 low-
portfolio contains more than 500 brands that are owned by The Coca-Cola Co.
and no-calorie options
like Dasani waters, Gold Peak teas and coffees, Minute Maid and Fanta, or are
Renew Community
Donated more than 1.9 million part of investment and distribution agreements like Monster energy drinks and
beverages to hurricane and wildlife BodyArmor sports drinks.
relief efforts and $2.4 million to
veterans’ organizations since 2012. As one might expect, bottling and delivering billions 350 distribution centers, more than 50 production
of bottles of refreshment to consumers worldwide facilities, more than 55,000 employees and more than
Renew Jobs requires an agile system that not only delivers value 1.3 billion physical cases of volume.
Employs 90,000 team members to customers across the supply chain but works In a statement when the final U.S. transaction
across the United States.
seamlessly with IT, national and local partners and closed in October 2017, J. Alexander “Sandy”
Renew Understanding retailers, to enable consumers to “Taste the Feeling.” Douglas Jr., then president of Coca-Cola North
One-third of the new local To keep operations streamlined and humming America, said: “We are reshaping our business and
business system is minority owned. along, the Coca-Cola system in North America accelerating our transformation to become a total
Renew Empowerment embarked on a milestone commitment nearly a beverage company. Our system is built to respond
Global commitment to empower decade ago to reshape its North American bottling to consumers’ needs in a fast-moving and highly
5 million women entrepreneurs by operations by returning ownership to local partners. competitive environment. Returning the local part of
2020; more than 140,000 women All told, during the span of 10 years, the Coca- our business to where it really belongs and will best
entrepreneurs trained in the U.S. Cola Co. and its U.S. bottling partners worked perform — in the hands of local companies — is a
in business skills since 2013. together to execute 60 transitions, which included key enabler of the exciting transformation and growth
continued on page 30

28 | Beverage Industry | JANUARY 2019 | bevindustry.com


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in these fine brands.
Cover Story
continued from page 28
of our business.” Coca-Cola brands and cross-licensed brands in the
Known as Coca-Cola’s 21st Century Beverage Monster, BodyArmor and fairlife portfolios across
Partnership Model, today 68 independent U.S. Coca- 90 percent of Iowa and parts of Minnesota,
Cola bottlers are running their own trucks and bottling Wisconsin, Illinois and Missouri.
operations as a fully refranchised system. Some, like A Coca-Cola bottler for more than 109 years, Atlantic
Charlotte, N.C.-based Coca-Cola Consolidated have is a family owned and operated company that strives
been part of the Coca-Cola bottling network for more to execute quickly against all of its core elements in
than 115 years, while others, like Reyes Coca-Cola its route-to-market business, says Kirk Tyler, chief
Bottling, Irvine, Calif., just celebrated its one-year executive officer and chairman, who has 40-plus years
anniversary with the system this past October. in the business.
The U.S. Coca-Cola system now comprises a diverse “Like other bottlers, national consumer trends
array of independent bottlers, from multinational around wanting more variety in flavors have fueled our
owners to decades-old family held operations. The new brand flavor expansion with additional flavor SKUs,”
system is working to reinvent the future of the business, Tyler says. “The trend toward the small batch craft
especially in such key areas as portfolio diversification, beverage category is not lost on us. We are testing the
packaging innovation, production, procurement, waters by rolling out Barq’s French Vanilla Crème Soda
technology and pricing, the company says. in limited supply to see if we can get some traction.”
The refranchised system also operates on a new IT The company continues to see solid and sustained
platform that enhances efforts to digitize the Coca- growth around its core brands like Coca-Cola and
Cola system and improve the ability to coordinate and Sprite, while Coke Zero Sugar, its tea portfolio (Gold
manage information across bottling partners at both Peak and Honest) and vitaminwater also are top
local and national levels, the company says. performers, Tyler says.
“We’re incredibly pleased with the newly refranchised Since Atlantic acquired new territory within the
Coca-Cola ‘System of the Future,’” said Coca-Cola North refranchised network on Oct. 1, 2016, the company
America President, Jim Dinkins. “The strength of our has grown four times overnight. During the past two
U.S. bottling system is now built on the diverse talent years, the company has made major investments in
and expertise of 68 independent bottlers, and we’re facilities, fleet and information technology. In addition
already seeing results in the marketplace as we evolve to to its current operations in Des Moines, another
a total beverage company. Together, as an empowered manufacturing warehouse in Walcott, Iowa, should be
and agile franchise system, we’re creating value, building operational by spring 2019, to serve the Quad Cities area.
strong brands and refreshing consumers with a wide Since joining the refranchised bottling network, Tyler
variety of beverages. Coca-Cola bottlers, with their deep notes that a “hallmark change” involved creating locally
local roots, also are making significant investments to led management teams in each of its geographies.
strengthen the communities they serve.” “It is critical for us to have local management which
Key to the success of the 21st Century Beverage can make local decisions and spend the time to build
Partnership Model is having a re-energized and stronger strong community relationships,” Tyler says. “Being
relationship between the beverage manufacturer and its an independent franchise bottler under Coca-Cola
bottlers, who go above and beyond for their customers, allows us to streamline our core business and creates an
explains James Quincey, president and chief executive efficiency that optimizes resources, which then cascades
officer of The Coca-Cola Co. to our consumers and customers in a positive way.”
“The end of refranchising in North America
is gratifying in large part because of the bottlers COCA-COLA CONSOLIDATED
who have expanded or joined the system for the CHARLOTTE, N.C.
first time,” Quincey said in the November issue A Coca-Cola bottler since 1902, Coca-Cola Consolidated
of Beverage Industry. “It shows that this is a great operates 13 production centers and more than
industry with great growth opportunities. 75 distribution and sales centers, offering more than
“… We are working together to drive results,” he 300 brands and flavors in 14 states and Washington,
continued. “… Even the largest D.C., extending its reach to portions of the Southeast,
companies benefit from localizing. Midwest and the Mid-Atlantic.
People and relationships drive With 2017 sales of $4.3 billion, Coke Consolidated
growth.” dispersed more than 300 million physical cases and
To highlight the transformation, served 65 million consumers. “We are honored to
the following are spotlights on six be the ‘local bottler’ in the communities we operate
bottlers that are part of the newly throughout our territory. This allows us to cultivate
refranchised Coca-Cola Bottling and maintain relationships with our customers and
System: communities to better serve them,” the company says.
Coca-Cola’s Renew Campaign, which focuses on six
ATLANTIC COCA-COLA key areas: Renew Our Products, Renew Water, Renew
BOTTLING CO. Opportunity, Renew Community, Renew Jobs, Renew
ATLANTIC, IOWA Understanding and Renew Empowerment, aligns well
Primarily operating out of a with Coke Consolidated’s guiding principles, one of
300,000-square-foot warehouse which “to serve others,” is at the heart of its Purpose
and 90,000-square foot office in Statement, it says.
>>

The Coca-Cola North American bottling operations completed its historic


refranchising initiative in 2017, turning bottling over to 68 independent, Des Moines, Iowa, Atlantic and its “Our goal as a company is to have over 17,000
local business owners. (Image courtesy of The Coca-Cola Co.) roughly 800 employees distribute servant leaders making positive impacts where they

30 | Beverage Industry | JANUARY 2019 | bevindustry.com


live and work,” the company says. “This past year, our In 2017, more than 100 million beverages were
company was proud to honor thousands of veterans sold and distributed from 17 manufacturing and
and members of our military through our Message in distribution locations across the state, including
a Bottle program, where we presented them positive Orlando, Tampa, Jacksonville and Hollywood, says
messages of hope in Coke mini bottles, held special Troy D. Taylor, chairman and chief executive officer
events, and provided tickets to sporting events. (CEO) of Coke Florida.
Through our ‘Big Hearts. Mini Cans’ program, we Also playing a significant role in the bottler’s reach
awarded thousands of teachers [with] gift cards and has been eCommerce. “Coke Florida is excited to be
backpacks full of supplies for use in their classrooms.” the first bottler to offer eFulfillment through Coke’s
Coke Consolidated notes that the sparkling mini relationship with a major online retailer,” Taylor
portfolio, both cans and bottles, continues to accelerate explains. “Since July 2017, we have delivered more
as consumers are responding to an increased variety than 36,000 cases through our partnership — and in
of packaging options. Functional categories such as 2018, we had our first 500-case day.
energy drinks and RTD coffee also show continued “We’re the first bottler ever to do this, and we’ve
growth, it adds. added a new team of people dedicated to growing our
The company notes the fun they’ve had leveraging eFulfillment business,” Taylor continues. “The benefits
the Share a Coke campaigns, which provides Coca- of being an independent franchise bottler under Coca-
Cola bottlers and its customers with a unique way to Cola is enormous because Coke communicates quality.
generate profitable, incremental sales while creating a As an independent bottler, we can the leverage the
personal consumption experience for the consumer. brand and focus on the local market we operate in.”
Since joining the network, Coke Florida invested
COCA-COLA BEVERAGES FLORIDA LLC $10 million to improve its fleet by adding
TAMPA, FLA. 171 new vehicles designed to provide more efficient
Part of the Coca-Cola system since May 25, 2015, Coke deliveries in the many urban areas it serves. In one
Florida is the first greenfield bottler in nearly 60 years, location, it has invested more than $40 million to

>>
Employees at Heartland Coca-Cola Bottling
the company says. Coke Florida sells, manufactures replace bottling lines and increase capacity.
wear uniforms made of approximately 30
and distributes more than 600 Coca-Cola products in “We have 14 lines running cans as fast as 1,550 cans plastic bottles, Rick Frazier says. (Image
nearly 70 percent of the Sunshine State. a minute, and are running PET as fast as 900 bottles a courtesy of Heartland Coca-Cola Bottling)
continued on page 32

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bevindustry.com | JANUARY 2019 | Beverage Industry | 31


Cover Story
continued from page 31

LIQUID
minute,” Taylor says. “… The Jacksonville Frazier notes the importance of
facility has enabled additional flexibility “team” within the Coca-Cola system,
in the Coke Florida system by adding the stating: “We consider every employee
capability to produce 7.5-ounce sleek cans. of our company as a member of the
“Overall, we are projected to invest family. When you are on a team, you

NITROGEN
close to $300 million back into the pull together, you win together and
company by 2020,” he continues. “Coke you lose together. When we make a
Florida’s success in the competitive decision, it is not just affecting one
beverage business is built on our ability person, it impacts a family.”

DOSING
to leverage the growth and expansion
opportunities that exist in the Florida LIBERTY COCA-COLA
market. It’s our job to figure out what BEVERAGES, PHILADELPHIA
consumers want and to deliver that to During the past year, the 4,100
them on a consistent basis.” employees of Liberty Coca-Cola

with extreme precision HEARTLAND COCA-COLA


Beverages have been hard at work
operating eight production lines
BOTTLING CO. in three plants along with 10 sales
LENEXA, KAN. and distribution centers based in
Heartland Coca-Cola Bottling has been Philadelphia, New York and
Consistent package pressure a Coca-Cola bottler since February 2017. New Jersey.
With 2017 sales of more than Liberty joined the refranchised
Consistently low oxygen levels $600 million, Heartland is focused on bottling network when it acquired
driving innovations across its sparkling, Coca-Cola’s New York Tri-State Metro
Experienced worldwide service team still and energy categories, and is seeing territory in October 2017. In 2017,
its diet sparkling business outperform the bottler generated $1.1 billion
the category because of consumers in revenue by servicing five states:
reducing their sugar intake, it says. Connecticut, New York, New Jersey,
“We are seeing an increase in the Pennsylvania and Delaware.
demand for transaction packages, “The counties we serve … cover
coffee and tea, and our Monster line- a population of 28.3 million, with
up,” says Rick Frazier, president and 50 percent of consumers being
chief operating officer. “As a system, multicultural and serving one of the
we are also seeing an increase in our largest Hispanic populations in the
sparkling business.” country,” says Liberty Co-Owners
In order to better serve its local Fran McCorry and Paul Mulligan,
customers and communities, Heartland who have a combined 50-plus years of
operates as seven “hometown bottlers” Coca-Cola bottling expertise.
across its entire footprint, which Excluding individual flavors, the
spans Kansas, Missouri, Illinois and a bottler distributes 62 non-alcohol
small part of Nebraska and Iowa. The brands and is realizing solid growth
bottler maintains 19 locations with one in small packages such as mini-cans
production facility, one hub warehouse and 1.25-liter bottles. It also is seeing
and 17 sales and distribution centers. accelerated growth in Coca-Cola
Employing about 2,000 team members, Zero Sugar, Diet Coke flavors and
the company has found success by Seagram’s Ginger Ale.
focusing on its employees, its customers Since joining the refranchised
and its communities to drive positive network, McCorry and Mulligan
results, it says. note the benefits of being aligned
With an eye on sustainability, with such a recognizable system.
Heartland installed a $1.2 million Nano “There has been great collaboration
Filtration Water System to increase in addition to creating a culture of
supply output of treated water with a empowerment and accountability
significantly smaller footprint. This is throughout our organization,”
in addition to the company’s unique they say. “We focus on our local
4 Barten Lane, Woburn, MA 01801 uniforms, which are made of recycled communities and invest back into
T 781-933-3570 plastic bottles, it says. them for long-term growth. We focus
F 781-932-9428 “Each shirt is made of approximately on innovation — looking for fast
[email protected] 30 plastic bottles,” Frazier explains. progress, not perfection.
vacuumbarrier.com “With our first order, we have been able “Liberty can make local decisions
to recycle over 200,000 plastic bottles. in each of our diverse markets with a
Our employees were involved in picking more efficient process to implement
Since 1958 the new uniforms and wear-testing. It’s programs,” the co-owners continue.
important to them that we invest in this “It also allows us to focus on priorities
new recycling technology and continue to that are specific to our market, such as
search for ways we can be sustainable.” emerging brands.”

32 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Coca-Cola bottling partners are actively involved in the communities where they live and
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In October 2018, both Reyes and its O’Brien also points out that four of
chief executive officer Bill O’Brien the Top 6 U.S. cities for millennials are EHVWRIWKHEHVW
celebrated their one-year anniversary. in California and Nevada. ,Q:KLWH
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company to reinvest in our business says. “Brands such as Monster have
became apparent early on in our entered new categories (e.g., coffee WKHZRUOG
journey,” says O’Brien, a second- and hydration) and smartwater has 2XUEOXHEHUU\JURZHUVWKDQN\RXIRUWKHVXSSRUW
generation executive who joined the added brand derivatives such as +LJKEXVKEOXHEHUULHVFRPSULVHRIDOOEOXHEHUULHVJURZQLQWKH
Coca-Cola family as an intern in 1987. antioxidant and alkaline offers that 8QLWHG6WDWHVDQGRI1RUWK$PHULFDQEOXHEHUU\SURGXFWLRQ
“They are a premier logistics company, are performing very well. )UHVKEOXHEHUULHVDUHDVXSHUVWDURIWKHSURGXFH
a food and beverage distributor with “The same can be said for our strong VHFWLRQDQGDYDLODEOHWKURXJKRXWWKH\HDU
incredible capability, especially in set of brands in protein, like Core
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warehouse delivery and local sales,” Power and Yup, from our partners
LQDUDQJHRIIRUPDWVIUHVKIUR]HQ
O’Brien says. “This expertise, together at fairlife,” he continues. “Finally,
SXUHHFRQFHQWUDWHGHK\GUDWHGDQG
with their willingness to invest in our our most recent brand additions like
operations, has and will continue to be BodyArmor and Topo Chico Agua PRUH
a huge benefit to us.” Mineral are poised for growth.” ,QJUHGLHQWXVHRIKLJKEXVK
With $2.3 billion in sales in 2018, O’Brien adds: “We are fortunate EOXHEHUULHVFRQWLQXHVZLWK
Reyes operates a total of 35 plants, enough to be part of a company that KXQGUHGVRIQHZSURGXFWV
including three bottling facilities has grown tremendously in its 42- LQWURGXFHGHDFK\HDU%HVLGHV
and 14 soon-to-be 15 bottling lines, year history and continues to grow as WUDGLWLRQDOLWHPVQHZFDWHJRULHVDUH
and distributes 186 million cases of we explore new ways to better serve JURZLQJVXFKDVSHWIRRGVDQGQDWXUDO
such Coca-Cola flagship brands as the food and beverage industry.” FRVPHWLFV
Coca-Cola, Diet Coke, Dasani waters,
6FLHQWL¿FUHVHDUFKFRQWLQXHVWRGRFXPHQW
Gold Peak teas and coffees, Sprite, COCA-COLA CANADA
KHDOWKEHQH¿WV9LVLWRXURQOLQHEOXHEHUU\UHVHDUFK
and ZICO coconut water at 81,000 BOTTLING LTD. (CCCBL)
GDWDEDVHZZZEOXHEHUU\WHFKRUJ
stores, restaurants, entertainment To complete its refranchising efforts
venues, office and college campuses in North America, in October 2018, +LJKEXVKEOXHEHUULHVDUHDQH[FHOOHQWFKRLFH
throughout California, including San CCCBL announced its acquisition of &RQVLVWHQWVXSSO\FRQVXPHUGHPDQG RSSRUWXQLWLHV
Francisco and San Diego, and in parts Coca-Cola Refreshments Canada and
of Nevada, such as Las Vegas. returned the 120-year-old Canadian
“We’re operating in a very unique bottling operations to Canadian
market,” O’Brien says. “California ownership. CCCBL is a Canada-based
is now the world’s fifth-largest joint venture between businessman and
economy. It’s also incredibly diverse. philanthropist Larry Tanenbaum O.C.,
Latino consumers are quickly and Junior Bridgeman, entrepreneur
becoming the majority of consumers
in California and Nevada, and
and owner of Heartland Coca-Cola
Bottling Co. in the United States. Todd
www.blueberrytech.org
California is home to the fastest- Parsons is president and CEO. BI

bevindustry.com | JANUARY 2019 | Beverage Industry | 33


Up Close With...

A clean reformulation
Blossom Water THE NEW YEAR IS A TIME WHEN MANY LOOK TO START ANEW. BUT BLOSSOM
Water LLC couldn’t wait that long, and that eagerness has paid dividends for the
adds function
Westwood, Mass.-based company when it announced in mid-2018 that it was
to lineup rolling out a reformulated version of its fruit- and f lower-infused spring water.
By way of background, the brand’s line of essence this technology.
water is the only one using a different flower “We think that is where the market is headed
botanical in each of its SKUs, bringing to the U.S. and that we have a great first-mover advantage
market aromatic flavors long appreciated by many in this area, so we couldn’t be more excited about
cultures around the world, the company says. where this will lead the brand over the next
Building on that differentiated platform, Blossom 12-18 months,” he says.
Water launched Version 2.0 of the line in June 2018
for the purpose of enhancing three product features: TAKING IT MAINSTREAM
functionality, sweetener system and packaging, says Although function was one of the first steps
Founder and Chief Executive Officer Steve Fortuna. undertaken by Blossom Water’s reformulation, the
“Version 2.0, at its very core, was designed to be a brand also revisited its sweetener composition.
mainstream functional botanical water,” he explains. “The sweetener system was completely re-
When looking to add function to its product line, engineered to one which eliminated the agave and
Fortuna notes the increasing consumer demand erythritol, and brought in a very high-grade stevia
for products that support preventive health goals as well as raw organic cane sugar,” Fortuna says.
influenced the beverage-maker. “Not much cane sugar, because we took the calories
“What we’re seeing in the marketplace is that way down.”
people are moving toward things to help prevent an He noted that the new system allowed for a
adverse health situation from occurring in the first 55 percent drop in calories and carbohydrates
place,” he says. compared with the previous version; Blossom Water
Citing a Datamonitor survey that questioned now boasts a Nutrtion Facts label of only 10 calories
28,000 consumers around the globe, Fortuna says in each serving, or 20 calories in each 16.9-ounce
that immune health was the No. 2 most-desired PET bottle.
benefit in food or beverage, second only to general “It’s all part of the clean label,” Fortuna says.
health and wellness. “What we have now with high-grade stevia and
Blossom Water is addressing immune health a little bit of raw organic cane sugar is certainly a
by adding Staimune, a shelf-stable probiotic much cleaner, healthier blend than the prior agave
manufactured by Cleveland-based Ganeden, now and erythritol.”
part of Kerry Group. “We are using … a shelf- As to its impact on flavor, Fortuna enthuses that
stable probiotic, which is an inactivated culture the sweetener refresh actually has elevated Blossom
that provides all the immune health benefit of live Water’s flavor profile. “Our flavors are brighter,” he
culture,” Fortuna says. explains. “There’s now even more fullness of flavor
Fortuna explains that the decision to in the bottle than there was before. So we think we
add Staimune came as more consumers hit a home run because, typically, when you want to
have expressed an interest in probiotics. add function and reduce sugar, it’s almost a given
“There has been an increasing that you’re going to have to compromise on taste.
awareness over the past years of the But, in fact, most of our customers prefer the taste of
benefits of probiotics,” he says. Version 2.0 to that of Version 1.0.”
Because consumers traditionally have In addition to function and flavor, Blossom Water
been limited to kombucha or other knew that if it wanted its ready-to-drink beverage to
sour-tasting fermented products when be mainstream, it would need to shift its packaging
seeking probiotics in a food or beverage, from glass to PET. “We wanted everybody to be able
Fortuna explains that the market was to drink this,” Fortuna says. “PET is good for those
ripe for a light and refreshing water that on the go because it’s lightweight with no breakage
could offer the same immune health risk. Good for an active lifestyle is what we’re
benefits. saying.”
Noting that the functional ingredient The new packaging format also has allowed
does not impact the water’s flavor, the water brand to penetrate channels previously
Fortuna expects Blossom Water is at an inaccessible, such as educational and hospitality
(Image courtesy of Blossom Water LLC) advantage by being an early adopter of settings. For instance, it is currently rolling out at

34 | Beverage Industry | JANAUARY 2019 | bevindustry.com


By Jessica Jacobsen

an elite Cambridge, Mass.-based university and is was partly driven by discussions with category
in testing with two luxury Las Vegas hotel chains, buyers across various retail channels.
Fortuna explains. “Mango is definitely trending strongly,” Fortuna
Beyond the primary packaging, Blossom Water says. “And so is hibiscus. It’s a flower that is well
also updated its label. “What we found was the recognized and used extensively throughout Latin
original label didn’t really give the shelf pop that America and many other parts of the world. …
we needed, so we moved to a white matte finish,” We wanted to take fruits and flowers that are
Fortuna says. recognizable, on-trend and, of course, that make for
All these tweaks have begun to pay off. “We a delicious combination.”
have re-engaged in-store sampling activities now “The mango has a sweet, ripe taste and aroma
that Version 2.0 is out, and our sales at such events that is complemented by the tart, cranberry-like
have more than doubled,” Fortuna says. “We’re hibiscus,” he continues. “The flavor’s only [been]
extraordinarily encouraged that we can be in any out a few months and so far it’s 100 percent thumbs
given grocery store … and be moving two or more up on feedback.”
times the amount of Version 2.0 than we did at the Introducing Mango Hibiscus and its other flavors
very same store with Version 1.0 just six months to the U.S. marketplace is not unlike what happened
earlier. with coconut water several years ago, Fortuna
“People are really digging the probiotics, they’re suggested. “Coconut water was a staple drink in
digging the package,” he continues. “They like the South America long before it was marketed and
lower calories, and they love the flavor.” became a success story in this country.”
That’s a model of how to bring something with a
SWEET INNOVATION proven multicultural appeal to the American palate,
In conjunction with the release of Version 2.0 was he added. “We’re doing much the same with flower
development of Blossom Water’s newest flavor: botanicals, taking what’s been appreciated in other
Mango Hibiscus. parts of the globe, and making it available here in
Noting that the company tests a lot of fruit and a flower-plus-fruit combination that’s both novel
flower botanical essences, Fortuna explains that the and familiar at the same time and, above all, tastes
decision to formulate a mango-flavored product great,” Fortuna concluded. BI

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bevindustry.com | JANAUARY 2019 | Beverage Industry | 35


Channel Strategies

Maintaining a
steady course
Beverage sector THE AESOP’S FABLE “THE TORTOISE AND THE HARE” PITS THE SPEEDY HARE

bright spot in against the plodding tortoise in a race of the “Davids versus the Goliaths.” With a
slow-and-steady approach, the tortoise emerges as the race’s victor. Although not
supermarkets a children’s story, competition in the supermarket channel has become a “race” as
competition for shoppers heats up between brick-and-mortar stores and online
options.
Changes in the entire consumer packaged goods consumer interest in top-performing non-alcohol
(CPG) landscape, particularly with eCommerce beverages are adding key health benefits and
and even cashless options, is rocking the landscape. excitement to the channel.
Beginning in 2012, supermarkets began losing “Benefits include excitement (fizzy), unique flavor
leadership share to other multi-outlet (MULO) retailer combination, electrolytes, vitamins and energy,” she
channels, including supercenters, dollar stores and says. “Key products introductions include Nestlé
drug stores, according to Chicago-based Mintel’s Splash, LIFEWTR, CORE, glacéau smartwater, Red Bull
July 2018 “Grocery Retailing – US” report. The Green Edition and Powerade X Ion 4.”
In 2018, supermarket sales were an estimated At 9.8 percent growth, energy drinks are the top
$319.6 billion, a 1 percent increase over the previous category growth leader in terms of dollar sales while
year. In 2019, the market research firm forecasts unit sales are up 9.7 percent. Bottled water continues to
supermarket sales of $323.1 billion and MULO sales of perform well, with dollar sales increasing 7.5 percent
$351.3 billion, an increase of 1.1 percent and 1.9 percent, and unit sales up 4.9 percent. Sports drinks dollar and
respectively, the report states. unit sales saw increases of 3.9 percent and 2.1 percent,
“While supermarkets continue to grow and comprise respectively.
nearly half of total sales, other MULO is collectively Not to be outdone, sales of alcohol beverages also
growing at a faster pace,” the report states. “Walmart is are faring well in supermarkets. For instance, premixed
the primary ‘other’ MULO retailer, pulling sales away cocktails/coolers saw double-digit dollar sales growth
from supermarkets, with 56 percent of its sales coming of 48.8 percent and increased unit sales of 29.8 percent.
from grocery, up from 14 percent 20 years ago in 1998.” Yet, the industry average in multi-outlets plus the
Winston-Salem, N.C.-based Inmar Analytics’ 2018 convenience sector is comparable, with dollars of 52
“Future of Food Retailing” report also points to the percent and units of 31.7 percent, Viamari notes.
changing times and the fact that the traditional grocery Although growth in this sub-segment is occurring
channel is losing dollar share to the non-traditional within a small base, Viamari thinks it is an up-
grocery channel including supercenters and wholesale and-coming trending area. “We have seen a lot of
club stores such as Walmart, Costco and Sam’s Club. innovation in this area, as consumers seek exciting,
In 2017, a recorded 25,243 traditional supermarkets lower-carb, lower-calories, on-the-go adult beverage
were in operation, a slight 0.5 percent decrease versus options,” she says. “Key product launches include
2016. However, the report states that traditional White Claw Hard Seltzer, Truly Spiked and Sparkling
supermarkets increased dollar sales by 1.3 percent to and Barefoot Refresh.”
$445.7 billion. “Traditional supermarkets ended 2017
with a 35.9 percent dollar share,” the report states. PERSONALIZING PROMOTIONS
Susan Viamari, vice president of Thought Leadership To keep pace with consumer spending being divvied
at Chicago-based Information Resources Inc. (IRI), up between a variety of non-traditional formats, Jon
elaborates that the grocery channel saw unit sales slide Hauptman, senior director at Inmar Analytics, Winston-
1.1 percent, while dollar sales ticked up 1.3 percent. Salem, N.C., suggests that traditional supermarkets
Although the channel has lost dollar and unit share should refocus on trying to better understand shoppers’
to club, convenience and dollar stores during the past needs, and meeting and exceeding their expectations
year, the beverage sector has been “a bright spot” through personalization.
during that time, Viamari says. “For example, they’re personalizing promotions
“Dollar sales [of beverages] were up 2.4 percent via digital offers to ensure they’re relevant to each
>>

In the supermarket channel, premixed cocktails/


coolers saw double-digit sales growth of 48.8 percent, and units were up 0.9 percent,” Viamari explains. shopper, and supermarkets are beginning to explore
says IRI’s Susan Viamari. White Claw Hard Seltzer
“Liquor grew dollars of 2.5 percent and units of plus personalized base pricing in which they offer
is among the new product launches that offers lower
carbs and lower calories. (Image courtesy of Mike’s 0.5 percent.” shoppers low base/everyday prices on the items that
Hard Lemonade Co.) Viamari notes that strong innovation and strong are most important to each individual household,”

36 | Beverage Industry | JANUARY 2019 | bevindustry.com


By Barbara Harfmann

Hauptman explains. Despite these figures, many consumers still indicate


Supermarkets must continue to focus on making a strong preference for in-store shopping. “Nearly
beverages exciting, accessible and on-the-go friendly, eight in 10 of those surveyed do all their grocery
with a great assortment of flavors, pack sizes, shopping in a physical store as opposed to online,”
packaging and plan-o-gram ideas, affirms IRI’s states Mintel’s July 2018 “Grocery Retailing US” report.
Viamari. “The remaining 22 percent are multi-channel shoppers,
“Tailoring all of these elements carefully down to the blending the responsibility between in-store and online.
store level will ensure that the mix meets the explicit “… Over a third of non-online shoppers said they
market need — for instance, suited for stock-up in some are interested in shopping online in the future,” it
areas/banners, while more quick trip or fill-in friendly continues. “Moreover, digitally native iGeneration
in others,” she says. “Retailers need to keep a close eye members and millennials will drive this digital shift as
on evolving consumer behaviors and preferences and three in 10 are already conducting a significantly higher
constantly hone their mix to stay in lockstep with those portion of their shopping online.”
needs/wants.” Traditional supermarkets, however, are leaning into
As with many large retail industries, establishments experiential retailing like offering in-store restaurants,
in the supermarkets and grocery stores industry come cafés and bars to attract younger consumers more akin
in a multitude of shapes, sizes, formats and specialties, to shopping online, it adds.
according to Los Angeles-based IBISWorld. While eCommerce is having a “strong strategic
In its July 2018 “Supermarkets & Grocery Stores in impact” on traditional supermarkets, Inmar’s
the US” report, the market research firm affirms that Hauptman notes that online elements have forced the
growth from nontraditional store formats and the fact channel to roll out its own eCommerce offerings as a
that more than 82 percent of households defensive measure.
are purchasing organic products, including a nearly “Now, offering eCommerce is table-stakes and
14 percent increase in organic fruits and vegetables, is supermarkets are refocusing on enhancing their
fostering growth in a stagnant industry. eCommerce proposition to personalize the online
“As limited-assortment stores and department shopping experience, making online shopping quicker
stores have flourished, large-scale traditional grocers and easier, and to do so profitably,” Hauptman says.
have struggled to compete,” IBISWorld’s report states. Coffee is the beverage category most impacted by
“Over the past five years, companies like Kroger and eCommerce, IRI’s Viamari says. “[Coffee is] seeing year-
Albertsons struggled to generate growth organically over-year growth of 35.5 percent online,” she explains.
and engaged in a flurry of merger and acquisition “Small players, unique/local/artisan options are
activity. helping to drive this growth. But, here again, retailers
“Rather than open up new stores, these large have an opportunity to bring personalization to the
companies acquired regional brands with a loyal local game to protect and grow their consumer base.”
following,” the report continues. “This strategy enables
large brands to expand their geographic reach without INDUSTRY OUTLOOK
incurring high costs.” Industry analysts note that dollar share for the
traditional grocery channel will continue to decline
THE SOCIAL SHAKE-UP while limited-assortment and fresh format will see
The tectonic shift in consumer shopping habits is gains.
shaking up the entire CPG marketplace as consumers “By 2022, dollar share for the traditional grocery
trade mall-walking for web-surfing, with staggering channel will decline to 43.1 percent, a decrease of
economic implications, notes a white paper from 1.5 percent,” states Inmar Analytics’ “Future of Food
Lakeland, Fla.-based TriFactor. Retailing” report. “The convenience store channel
Mobile eWallet apps like Boost also are gaining will experience a slight decrease in share, reaching
ground with retailers. For instance, more than 30,000 15.7 percent. The number of traditional supermarkets
merchants have signed up with the app’s cashless will shrink 2.7 percent to 24,572 stores.”
payment system. Among them is Malaysia-based The decline will be offset by double-digit growth in
Mydin, a chain of hypermarkets and supermarkets, store counts for fresh format, limited-assortment and
which now offers cashless payment services for its super warehouse formats, it adds.
customers. IBISWorld’s “Supermarkets & Grocery Stores in
“Drawn in by the promise of lower cost and cashless the US” report notes that during the five years to
transactions — with product comparisons and reviews 2023, the supermarket and grocery store industry
as easy as a couple of clicks, online shoppers have will continue to benefit from a strengthened U.S.
spurred eCommerce growth by 25 percent per year economy, more disposable per capita income, and
since 2012,” the white paper states. “In the U.S. alone, the fact that shoppers will be more inclined to
eCommerce now accounts for nearly 10 percent of total purchase premium-level, value-added products at
retail sales, and 80 percent of American consumers have retail stores.
made an online purchase in the last 30 days.” The report, however, cautions that intensifying
In 2017, eCommerce sales for food and consumables competition from alternative retailers, such as dollar
reached $46 billion, an increase of 26 percent, according stores, online grocery and wholesale clubs, will make
to Inmar’s “Future of Food Retailing” report. It competition difficult for the supermarkets channel.
suggests that eCommerce sales will significantly “Overall, IBISWorld projects industry revenue to grow
>>

increase as more retailers accelerate their digital at an annualized rate of 1.6 percent to $686.1 billion The rise in sparking and still waters is increasing
penetration in traditional supermarkets, experts say.
strategies and expand their omnichannel capabilities. over the five years to 2023,” it states. BI
(Image courtesy of Nestlé Waters North America)

bevindustry.com | JANUARY 2019 | Beverage Industry | 37


Between Drinks

<<
Baby, it’s
cold outside
Even though it’s cold

<<
outside, this doesn’t Driving iindustry
d t di diversity
it
stop consumers from S&D Coffee & Tea and Specialty Coffee
partaking in the Association (SCA) announced that five coffee
consumption of their professionals will be participating in a new
favorite frozen cocktails. two-year Leadership Equity and Diversity
This month, Rabbit (LEAD) Scholarship program. The scholarship
launched a freezable is aimed at increasing leadership diversity
cocktail maker that within the global coffee community by
allows consumers to allowing access to professional development
make Margaritas, frosé, piña coladas and resources to people from underrepresented
other frozen cocktails using their own or marginalized communities. The group
freezers. The set includes a silicone will attend an SCA origin trip, a community
cocktail carafe, neoprene sleeve, lid, professional event and complete their choice
muddler, stir spoon and recipe of a Coffee Skills Program course or AST
booklet. The bar accessories are Certification. Chosen from 60 applicants,
designed for the at-home mixologist the 2018-2020 LEAD Scholars are Karla Ly
who loves to throw parties anytime Quinones, Lisette Barbera, Smayah Uwajeneza,
of the year, the company says. Stephanie Alcala and Taya Brown.
CARPE
DIEM
BY BARBARA HARFMANN
MANAGING EDITOR
DID YOU KNOW? 8.1%
I
n the film “Dead Poets Society,” actor Robin Williams
famously encourages his students to embrace “carpe With more consumers seeking protein in
diem” or “seize the day.” For me, this ubiquitous phrase
is resonating even more now that the new year is here. Yes, it’s
powders and ready-to-drink beverages, the
time for “wiping the slate clean” and starting anew with plans global sports nutrition market accounted for
to eat better, exercise more, etc.
So, what will 2019 hold for the beverage industry? Several $28.3 billion in 2016 in the United States and is expected to
market research firms and experts revealed their upcoming top reach $45.2 billion by 2022, growing at a compound annual
trends and predictions.
In a statement, Will Bernat, co-chair of Nutter, McClennen & growth rate of around 8.1 percent between 2017 and 2022.
Fish’s food and beverage group, suggests that the hunger for
innovation will continue with larger beverage brands continuing — Research from Zion Market Research in a report titled
to acquire smaller, niche brands. “Sports Nutrition Market: Global Industry Perspective,
Given the fact that coffee is no longer a morning-only Comprehensive Analysis and Forecast, 2016–2022.”
beverage, Bernat predicts that cold brew will continue to be
“hot.” “Like craft beer, cold brew is a vast category and ripe

<< Bringing wine to life


for innovation when it comes to providing products for multiple
taste profiles,” he said. Functional beverages also will continue
to proliferate. “Why drink water when you can drink collagen- After winning a silver medal for its mobile wine app at the
infused water?,” he asks.
Market research firms also are emphasizing the trend to stay HALO Awards that took place recently in Amsterdam, Tussock
cognitively fit as much as physically fit. Mental health is a Jumper is creating a fun and useful way for consumers to
pressing concern around the world and many consumers are
turning to health-enhancing ingredients to help relieve stress,
learn more about wines from various wine regions through
anxiety and insomnia, says GlobalData in its “Top Trends in its portfolio of more than 20 wine varietals from 11 different
Healthcare and OTC Products 2018” report. winemaking regions. Created by AR4REAL and Doruk Eker,
The report reveals that 67 percent of North American
consumers say that stress is a pressing mental health consumers can download the app and point any Android or
concern followed closely by overwork (59 percent) and IOS phone at the wine label, and watch each country’s animal
insomnia (57 percent). ambassador spring to life, talk about wines in their local
Soft drinks with mental health benefits could help fill that
void and are a missed opportunity in North America, the “accent” and make suggestions for food pairings. “Our goal
analytics firm says. is to help educate millennials and adventurous wine drinkers who seek
I am interested in seeing what new products and innovations
will triumph in 2019, and reporting on the latest trends for our new and unique experiences, by making wine exploration more approachable,”
readers. said Tussock Jumper founder Gert Jan van Arkel, in a statement.

40 | Beverage Industry | JANUARY 2019 | bevindustry.com


By Barbara Harfmann

CRIMSON HEXAGON ANALYZES


TOP TRENDS IN ALCOHOL
In 2019, finding out which alcohol products
will resonate with consumers might hold

TRENDS
in the alcohol
the key to success in the beverage industry.
Boston-based Crimson Hexagon, a data
analytics firm, pulled consumers’ insights
about alcohol consumption trends from
social media posts, reddit, online forums

industry and the like from 2013-2018. The following


infographic includes key takeaways:

44% WHITE WINE CONVERSATION Craft beer isn’t new on the scene, but
data suggests that the interest in
craft beer is changing. More women
male are becoming craft beer

56% drinkers, and


a majority of craft
beers drinkers
are aged 35+.
35 +
7% 25% % years old
12
<18 18-24 25-34 35+

LADIES LOVE ROSÉ as evidenced by the gender


57% breakdown conversation in which females account for
64 percent of the conversation. As female consumers
mature to 35 and older, a higher percentage
(57 percent) are driving the conversation.

14% 16% 13%


<18 18-24 25-34 35+
Preferences about
MOSCATO

red and white


RED WINE CONVERSATION
Men seem to drive the social conversation around red 83% wines are evolving.
wine (60 percent compared with 40 percent of women). Interest in drier
Women discuss white wine and rosé more than men. white whites, such as
Sauvignon Blanc, Pinot
Grigio and Chardonnay,

40% 6% 5% 6% are on the rise whereas


the conversation about the
60% 18-24 25-34 35+
sweetest wine, Moscato, has
20%
<18 declined almost 20 percent.
Note: Numbers might not equal 100 percent due to rounding.
Source: Infographic statistics courtesy of Boston-based Crimson Hexagon’s “Consumer Trends Report” Consumer Packaged Goods.”

bevindustry.com | JANUARY 2019 | Beverage Industry | 41


Packaging

(Ful)filling craft needs


Craft trends AS CONSUMERS’ LIFESTYLES ONLY BECOME BUSIER, BEVERAGE-MAKERS ARE
turning to convenient, on-the-go packaging options to coincide with this new
impact can filling,
trend. Whether it’s carbonated soft drinks (CSDs), craft beer or wine, convenient,
seaming equipment sustainable options like aluminum cans, are providing can filling and seaming
manufacturers a path for innovation.
An infographic from the Washington, D.C.-based more popular, craft brewers are turning to OEMs
Can Manufacturers Institute (CMI) titled “The who can meet consumers’ social lifestyle needs with
Economic Impact of the Aluminum Can Industry their craft beverage preferences. Can filling and
in the U.S.” notes that the total impact of beverage seaming manufacturers have had to innovate their
cans within the beer and soft drink industries offerings to match these new trends, experts note.
equates to $71.8 billion of economic impact and “Being able to take craft beer to places off-limits to
82,821 jobs. There are 96 billion cans (including glass is still creating a huge push in this industry,”
food, beverage and aerosol) produced every year, it says Barry Fenske, director of filling technology at
says. Franklin, Wis.-based Krones Inc.
Additionally, the primary packaging format “This misconception that you don’t put craft beer
continues to resonate with today’s consumers. in cans has been put to rest,” he continues. “A huge
Sixty-nine percent of survey-takers said they prefer uptick in requests for information and pricing has
cans because they are colder and more refreshing, occurred in the last three to four years and is still
CMI data states. Sixty-eight percent said they prefer ongoing.”
cans because they are easy to grab on-the-go, and Because of the increased demand in their
67 percent said they prefer cans because they are products, craft beer manufacturers have specific
easier to carry and harder to damage compared requirements that need to be met by equipment
with other packages, according to the association. companies. Those in the industry generally are
Consumers also gravitate to aluminum cans for looking for machinery solutions that are sustainable
their sustainable benefits. More than 80 percent of and fairly priced, but still provide quality
consumers said the infinite recyclability of cans performance.
matters to them, and seven-in-10 adults said they An important aspect in quality performance
purchase a product because its packaging is better during filling and seaming is the oxygen pickup in
for the environment, CMI data states. the closed container, Fenske explains.
As aluminum cans maintain their status with “Making machines smaller [and] less expensive,
consumers, it is having a larger impact on original while maintaining the same oxygen pickup
equipment manufacturers (OEMs). Within the past guarantees and reduces changeover times,” he says.
year, the can filling and seaming industry has seen a “This is becoming the next big push.”
substantial increase in the demand for canned craft To achieve the above, can fillers and seamers
beverages, as well as an increase have done just that, Fenske notes. “Making [the
in demand for cans of different machines] smaller, stripping away the bells and
sizes, notes John Wagg, global sales whistles to get them to a price level customers
manager at CMC-Kuhnke Inc., can afford, but you keep the same filling valve
Albany, N.Y. technology,” he says.
“There has been a proliferation For the craft beer industry, Krones offers the
of companies jumping into the Craftmate, a volumetric can filler specifically
canning/filling market,” he says. designed for the market. “From 80 [cans per
“With so many new companies minute] (cpm) [to] 2,200 cpm, with an oxygen pick-
producing filling/seaming up guarantee that protects the customers’ package,”
machines, the need to monitor he says. “Our most recent addition is the Craftmate
the products coming off these can filler for craft brewers —[it offers] a smaller
machines has become increasingly footprint and is less expensive to fit that 80-250 cpm
important.” need when they are ready to step up from an inline
solution doing 30 cpm.”
>>

Designed for the craft beer industry, Krones Inc. offers the Craftmate,
an affordable can filler that features a smaller footprint and a filling
SEALING THE SOLUTION The Craftmate offers innovative technology
capacity of between 80 and 250 cans a minute, it says. (Image courtesy As the demand for canned including electropneumatically controlled filling
of Krones Inc.) beverages increasingly becomes valves, a compact design, easy machine clean-up

42 | Beverage Industry | JANUARY 2019 | bevindustry.com


By Taylor Karg

“This misconception that you don’t put craft


beer in cans has been put to rest. A huge
uptick in requests for information and pricing
LIQUID
has occurred in the last three to four years
and is still ongoing.” NITROGEN
DOSING
— Barry Fenske, director of f illing technology, Krones Inc.

and double flexibility designed to The company offers double seam


fill CSDs and beer, the company’s inspection equipment and seamer
website states. The machine also set up gauges, that allows beverage
offers the ability to fill various can producers to check double seams
sizes and formats, it states. without destroying the package or regardless of your package
or closure preference
Also designed for the craft beer product, Wagg says.
industry, the Innofill CAN Compact, CMC-Kuhnke also developed
a series of can-fillers intended for doubleseam.com, an online
small- to medium-sized companies, troubleshooting guide that offers
is manufactured by Dortmund,
Germany-based KHS Group and KHS
a glossary of terms and topics
related to the seaming industry, as • Purge Oxygen
USA Inc., Waukesha, Wis. The Innofill
CAN Compact is designed for low-
well as abbreviations, dimensions
and evaluation guidelines for craft • Extend Shelf-Life
to-medium outputs of 10,000 to 48,000 brewers who are using that particular
cans an hour, the company says. equipment, it says.
“With its efficient CO 2 purging Before beverage-makers choose
systems, the machine enables their filling and seaming equipment,
extremely low oxygen pickup,” they should keep a few considerations
said Manfred Härtel, filling product in mind, experts note. “[Beverage-
manager for KHS, Bad Kreuznach, makers should consider] who can
Germany, in a statement. “Thanks fill their product and protect its
to its patented purging process, it integrity,” Krones’ Fenske says.
also consumes about 30 percent less “It’s all about shelf life and who can
carbon dioxide than conventional support the equipment in a timely
systems. Craft brewers can now manner.”
also profit from this feature with Just purchasing the can filler/
the compact version. The demand seamer is not enough, CMC’s Wagg
for an adapted model for smaller explains. “Beverage producers need to
filling quantities is rising in look at the total investment, including
particular among the producers of [quality assurance] equipment
high-quality, individual beers in the and other peripheral equipment.
USA where the craft brewing scene Especially true for those new to
has been well established for many packaging, finding a real partner —
years now.” with a commitment to service — is
crucial.”
MEASURING CAN SEAMS Sustainability also plays a pivotal
In addition to machinery designed role in can filling and seaming
for low oxygen pickup, the need for equipment. “[It’s] the same as every
accurate double seam measurements other industry,” Krones’ Fenske
is becoming important for many says. “More with less is always on
beverage producers, CMC’s Wagg the minds of customers and it is
notes. more of an ingrained idea in design
“Double seam inspection nowadays, not just a separate topic
technology continues to make that gets its own focus.”
advancements,” he explains. In the future, consumers might
“Traditional destructive systems start to see water packaged in cans,
have improved with high-definition as aluminum is easier to recycle
cameras and new innovative than plastic, he notes. “Honestly, the
software. The introduction of non- innovation is there,” Fenske says. The
4 Barten Lane, Woburn, MA 01801
destructive double seam technology issue is the same that clouded the
T 781-933-3570
is giving beverage producers an easy craft beer [industry] for years. You
F 781-932-9428
and efficient way to measure double don’t [package water] in cans. Maybe
[email protected]
seams.” that mindset will change.” BI
vacuumbarrier.com

bevindustry.com | JANUARY 2019 | Beverage Industry | 43


Packaging By Taylor Karg

Cap it up
Consumer trends TO CREATE REPEAT CUSTOMERS, BRANDS MUST CONSISTENTLY DELIVER ON
their product promises. As beverage SKU proliferation continues, manufacturers
inf luence caps,
and their caps and closures suppliers must stay up-to-date with the latest
closures market market and consumer trends in order to do so. According to Cleveland-based The
Freedonia Group’s 2017 “Global Plastic Caps & Closures by Product, Market and
Region” report, beverage caps and closures accounted for 66 percent of the overall
global caps and closures market in 2016, and will continue to account for a majority
of the demand in the future.
However, the market research firm notes that several or reducing material from our plastic closures, Silgan
major caps and closures applications for beer and Closures has designed a metal closure that will hold a
carbonated soft drinks will lag, while bottled water seal on a plastic jar,” Miller says.
applications will continue to grow. Augustin de Tilly, global business development
Global demand for caps and closures is projected to development for beverages at Aptar Food + Beverage,
increase 3.6 percent a year to nearly 2.4 trillion units, Crystal Lake, Ill., notes the consumer demand for
valued at $63 billion, by 2021, the report states. Value convenience and functionality from packaging as a
gains will be driven by growing consumer preferences prominent trend in the caps and closures market. “We
for closures that offer convenience and ease-of-use have seen a continued acceleration in the conversion of
advantages, as well as safety features, it adds. non-functional packaging into functional formats such
The healthy-hydration trend specifically is driving as dispensing spouts on pouches, dispensing closures
the caps and closures market, experts say. “There is and sports closures,” he says.
a substantial market emerging that is best described “As a result, the demand for convenience is
as healthy hydration,” says C.J. Rapp, chief executive increasing,” he continues. “When designing new
officer at Karma Culture LLC, Pittsford, N.Y. “It is products, our aim is to make the life ‘easier’ for the
bigger than a fitness beverage or low-calorie offering. consumer when they are experiencing the product.”
Consumers want low-to-no calories. They want the Conversely, caps and closures manufacturers also
beverage to support a healthy lifestyle; and water by must tend to their own trend needs. “The caps and
itself falls short on functional attributes. So what the closures market is not only influenced by consumer
consumer really wants is water with benefits.” trends, but also by the needs of bottlers and brand
A.J. Miller, marketing manager for Downers Grove, owners,” says Clint Rush, director of marketing and
Ill.-based Silgan Closures, echoes similar thoughts on business development for Indianapolis-based Closure
the wellness trends that are impacting the caps and Systems International (CSI).
closures market. “Consumers’ desire for healthy/ “CSI continues to have six overarching trend
wellness products has increased the use of certain categories against which most of our innovation
processes, which has increased the use of certain initiatives are aligned to satisfy consumers, bottlers and
materials,” he says. brand owners alike,” he says.
Miller points to the high-pressure processing (HPP) The following are trends recognized by CSI:
trend as one of those processes. “Products like fresh- ■ Wellness: closure suppliers should deliver packaging
pressed juice use HPP,” he says. “HPP keeps a lot of sealing solutions for healthy beverages and closures
the nutrients intact that would not survive a hot-fill that enhance package safety and security.
process. By using HPP, the consumer receives more ■ Consumer convenience and functionality: a trend
nutrients in their beverage. that warrants package development focus in order to
“HPP puts products under very high pressure, which increase brand marketability and to deliver consumer
requires packaging that will give under pressure then value.
return to its original shape,” he continues. “As a result, ■ Brand promotion and decoration: helps brand
plastic bottles with plastic closures or film with plastic owners communicate relevance, drives sales and brand
closures are broadly used with HPP.” loyalty, and generates shelf differentiation.
Another trend impacting beverage closures is ■ Product integrity and preservation: it is critical
eCommerce, Miller says. Lightweight packaging that consumers’ beverages taste fresh, authentic and
for eCommerce is preferred because of less costly consistently live up to expectations.
shipping, and the package still is able to hold up ■ Cost reduction: one of the most critical components
against the abuse a package endures during the facing consumer packaged goods companies.
shipping process, he adds. ■ Environmental stewardship: requires companies
>>

The Karma Push Cap is made of low-density


Because Silgan recognizes how eCommerce is to focus on source reduction, recycling and carbon
polyethylene, and is fully FDA compliant and
recyclable, C.J. Rapp says. (Image courtesy of impacting beverage closures, the company uses lighter- footprint emissions to help customers meet their
Karma Cultures LLC) weight packaging. “In addition to ‘lightweighting’ financial and sustainability goals.
continued on page 46

44 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Packaging

SAFE AND SUSTAINABLE finish lightweighting with advanced performance.


As the health-and-wellness trend flourishes, beverage This includes source reduction as well as reduced
suppliers and manufacturers also recognize the energy consumption in our plants and for our
importance of using materials that protect what’s customers.”
inside. Aptar also recognizes the importance of
“It is believed that packages and closures will need sustainable packaging materials. “Brands are
to provide secure sealing on many pack types and pursuing more sustainable packaging solutions that
sizes containing healthy beverages,” CSI’s Rush says. help them achieve their sustainability goals, as well
“This includes plastic, [glass and aluminum] bottles, as provide environmentally-focused consumers with
pouches, cartons and more. Packaging and closure solutions that fit their lifestyles,” de Tilly says.
companies such as CSI will need to help brand owners “Plastic reduction remains a target for all
protect the integrity of their natural products while also [consumer packaged goods] (CPGs), so we continue
helping them effectively communicate their wellness to deliver on lightweight solutions while also
benefits and differentiating their packaging from the balancing the product performance, especially
sea of other competing products on the store shelves, considering the challenging requirements of the
in vending machines, at venues and in retailer coolers eCommerce supply chain,” he adds.
around the world.”
Karma Culture also notes the importance of A POP OF COLOR
protecting what’s inside the packaging. “[There’s Just as with any type of primary packaging, caps
an] absolute need for a beverage to deliver on its and closures can help beverage products stand out
promise,” Rapp says. “There are science-based on store shelves, experts note. “Closures can pop on
studies that substantiate probiotics and vitamins shelves with attractive artwork and printing,” Silgan
deteriorate in water, so a pre-mixed ready-to-drink Closures’ Miller says. “Bright color and unique knurl
beverage with vitamins or probiotics has difficulty patterns are also eye-catching.”
with stability and meeting its stated claims.” Likewise, CSI’s Rush agrees on the prominence
Recognizing this obstacle, Karma Culture seized closures can bring to packaging. “The closure should
the opportunity by creating the Karma Push Cap. be an integral part of the packaging design,” he says.
“The Karma Push Cap assures optimal potency “The cap, color, shape, feel, graphics and printing
because it fully protects the active ingredients.” Rapp should communicate the brand’s identity and
says. provide differentiation from competitive products on
While protecting what’s inside, the Karma Push the store shelf.
Cap also showcases sustainable benefits. “[It] is “The material used greatly impacts, not only
made of low-density polyethylene … the very the aesthetics of the closure design, but also the
same material as a milk jug,” Rapp says. “It is fully functionality,” he continues. “This is taken into
[Federal Drug Administration] compliant and consideration during the closure development
recyclable.” phase.”
Similarly, Silgan Closures designs its caps and For example, CSI manufactures custom Carafe
closures with an environmental ethos in mind. Closures that are ideal for differentiating dairy, juice
“Sustainability has increased the demand for and other non-carbonated beverages, Rush explains.
aluminum bottles and closures,” Miller says. As market innovation continues, plastic caps
“Aluminum has a high scrap value compared to and closures will maintain their dominance. The
other recycled materials. As a result, aluminum Freedonia Group predicts plastic caps and closures
is one of the most widely accepted materials at to increase their already large share of demand,
recycling plants. primarily due to the shift in container mix generally
“Beverage manufacturers use aluminum closures favoring plastic over glass and metal, the report says.
and packaging so they can position their products Going forward, the market for caps and closures
as sustainable,” he continues. “That is being done only will get stronger, experts say. “Previously,
with water, alcoholic beverages, kombucha and consumers’ desired beverage packaging that was
coffee drinks.” convenient and easy-to-open,” Silgan’s Miller says.
As mentioned above, not only is lightweighting “We are seeing an increase in consumer interest for
helpful in keeping delivery costs down, but the security/tamper evidence [solutions].
practice also provides sustainability. “Caps and “Tethered closures are of interest as an option to
closures have definitely gotten lighter in weight, reduce closure waste,” he continues. “The idea is if
which address the [aforementioned] cost closures are tethered to the bottle, they have a greater
reduction and environmental trends,” ability to make it into recycling streams.”
CSI’s Rush says. “CSI and most closure As diverse demographics and changing lifestyle
companies have focused and continue to trends appear, it will provide innovation opportunities
focus on lightweighting. for the beverage and closure industry, CSI’s Rush says.
“There is a point to when a closure “There continues to be a need for enhanced
design for a given bottle finish is as light environmental sustainability performance through
as it is going to get,” he continues. “We are packaging,” he continues. “Closures and capping
now researching more environmentally solutions need to help bottlers improve their
>>

CSI manufactures custom Carafe Closures, a double-wall cap friendly materials, including bio-based operational efficiency.”
that offers aesthetics that are ideal for differentiating dairy, juice
and other non-carbonated beverages, Clint Rush says. (Image resins and recycled content. CSI has made As Karma Culture’s Rapp puts it, “This is only the
courtesy of Closure Systems International) it our mission to combine closure/bottle beginning.” BI

46 | Beverage Industry | JANUARY 2019 | bevindustry.com


House of Krones

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Packaging

Ryson Vertical PACKAGING NEWS


EVERYBODY’S package
Conveying Solutions GOING SURFING!
In celebration of the
redesign. In
partnership
40th anniversary of with design
the Cuervo Classic agency Stranger
Surf Competition, & Stranger,
Jose Cuervo released the brand
a limited-edition debuted a new
bottle of Jose Cuervo sophisticated
Especial Silver. Jose look, which
Cuervo established speaks to the
the Cuervo Classic fresh taste and
in 1978, a catalyst refined quality the pilsner offers,
that helped propel it says. “The brand takes a more
the sport forward, sophisticated design route not often
fostering some of the seen within the beer category in order
sport’s most iconic talent, it says. to separate itself from a sea of other
The limited-edition bottle features craft brands. We believe this new
a vintage label design that pays look will help drive brand awareness
homage to the Cuervo Classic with amongst a younger generation of
vibrant colors reminiscent of the craft beer drinkers,” said Gregor
original competition’s logo, it details. Mina, director of marketing at Trumer
Launched near the last round of fall Brewery, in a statement. Combining
surfing competitions, the limited- bright white and the brand’s signature
edition Cuervo Classic bottle is red, the new design puts “Trumer Pils”
designed to impress surf fans and front and center — paying tribute to
add a pop of color to the back bar, it its homeland of Berkeley, Calif., the
states. The commemorative bottle is company says. The new back label
offered in 750-ml bottles, retailing for includes an illustrated design with
$17.99 and is available nationwide at food pairing recommendations which
select grocery and liquor stores while complement the beer. The matte
supplies last. label also features proper pouring
instructions. This technique highlights
EXCLUSIVE Trumer’s aroma, effervescence, dense
DESIGNS head and lacing down the glass as you
Welch’s finish off the beer, it states. The new
Sparkling packaging has been released in both
Grape Juice bottles and cans throughout various
released California markets.
limited-
Ryson has the Right Vertical Conveying edition bottle
Solutions for the Beverage Industry. designs that
are exclusively
Whether you are handling cases, trays and packs or
available at
bottles and cans in mass or a single file we can help.
Ryson Spirals need less floor space than conventional Target and
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Quality and service come first at Ryson. We are the 100% Grape Juice, a new product
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application assistance or more information, give us a
these offerings, along with Welch’s BACK TO ITS ROOTS
call or visit www.ryson.com Sparkling Rosé Cocktail, feature the MOJO Cold Brewed Coffee Inc.
words “cheer,” “pop” and “clink” on announced new colorful labels
metallic packaging. The 25.4-ounce inspired by the company’s New
bottles each retail for $4.29. At Orleans roots. The company also
Kroger, Welch’s Sparkling Red streamlined its label copy to create
Grape, White Grape and Rosé Juice a more legible design, it says. MOJO
Cocktails are packaged in 25.4-ounce used Boston-based marketing agency
celebratory metallic bottles with a Breakaway to identify its target
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VERTICAL CONVEYING SOLUTIONS by the Beans” is the leading tag line
SOPHISTICATED REDESIGN on many new point-of-sale materials,
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48 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Predict the next


cannabidiol in 2019 SOCIAL MEDIA IS SUPERCHARGING CONVERSATION AND THE SPREAD OF
How social data
consumer trends. Shifts in consumer attitude, which typically have evolved over
helps innovators stay years now can grow and spread within a matter of months. But how as a marketer
ahead of the pack or innovator can you stave off the competition and stay ahead?
By observing millions of social media conversations, properties.
you can gain invaluable insight into consumers’ actual Trendscope isolates a category’s trends and places
behavior — their needs, desires and beliefs. But it’s them into context. For example, a new ingredient
not enough to have insight into what consumers are growing 100 percent year-over-year (YoY) appears
thinking and doing now. To successfully launch an interesting, until you discover 100 other ingredients
innovative product, brand owners need foresight on that are growing even faster. By using data science to
what consumers will think and do next. analyze a trend’s likelihood to grow in the future (not
just its current growth), Trendscope provides a ranking
PREDICTING THE UNPREDICTABLE of each and every category trend based on its relative
Trendscope is Black Swan Data’s innovation platform, maturity and Trend Prediction Value (TPV).
which uses Machine Learning models to isolate and
contextualize trends within social data. By continually CANNABIDIOL: THE POSTER
analyzing relevant social media conversations, it claims EXAMPLE OF THE MOVEMENT
to identify and predict emerging trends earlier and It’s no surprise that cannabidiol (CBD) dominates
more accurately than any other research tool. consumer conversation surrounding ingredients with
PepsiCo, McDonald’s and Google, among others, perceived medicinal benefits. Tetrahydrocannabinol
have all used this platform to gain a first-mover (THC) is the compound in marijuana that has a
advantage in their innovation and communication psychoactive effect, while CBD is deemed to provide
programs, using this insight to make faster, data-driven a wide range of health-related benefits including pain
marketing and innovation decisions. relief, preventing dementia and anti-inflammatory
By way of example, we’ve used Trendscope to review components. In terms of the number of conversations,
the U.S. non-alcohol beverages category to understand it’s still relatively small (versus coconut for example
how functional benefits, one of the most important at 1.675 million) but in terms of predicted growth
topics in 2018, will develop in 2019. The supporting in conversation, and therefore interest to product
data comes from more than 240 million consumer innovators, it ranks highly.
generated, social data points during the past two years
and contains analysis and predictions about 320 themes
Maturity
and benefits; 2,300 brands and products; and 1,400 #2 phase:
ingredients. TPV rank* Growing
FUNCTIONAL BENEFITS:
FOOD AS MEDICINE 64,660 +52%
Consumers are increasingly seeking additional qualities
conversations YoY
from their everyday food and drink products. No *Of 1,400 category ingredients
longer can a beverage’s sole purpose be to hydrate and
refresh. It also needs to improve your mental well-being Clearly, CBD presents a compelling opportunity
(by reducing your stress levels), aid your digestion (by for product innovators to add a known and highly
cleansing your gut) and even enhance your ability to recognized functional ingredient to their product
recall facts and figures (by boosting your memory). portfolio.
Of particular interest are conversations about But are beverage-makers interested in it for its pain
ingredients that have, or at least are perceived to have, relief purposes? This is a niche benefit and unlikely
medicinal (ranked No. 5 TPV of 130 category benefits). to appeal to a teenager wanting something to go with
Health conscious consumers are increasingly seeking their burger and fries.
natural ingredients to boost their overall wellness. More than likely, they are most interested in some of
Historically, this has manifested itself in do-it- the lesser well-known wellness benefits, which we see
yourself (DIY) drinks, like adding lemon and ginger to consumers talking about with reference to CBD — like
hot waters. Notably, out of the Top 10 ranked beverage vitality, calming and mental focus. By adding CBD as
ingredients within Trendscope, seven are strongly an ingredient to an existing product or brand, they have
associated and known for their health associations or the potential to appeal to a new segment of the market

50 | Beverage Industry | JANUARY 2019 | bevindustry.com


By Black Swan Data

altogether. For example, CBD conversations resonate main interest point for beverage marketers should
most highly with 30-34 year olds and peak between be its strong perception of delivering mental energy,
9-10 a.m. Will CBD infused smoothies and juices be the focus, memory and alertness with an extremely high
new healthy pick-me-up for Gen X? sentiment and therefore trust (L-theanine overall net
However, CBD is hardly new news to innovators. sentiment is 78 percent compared with CBD at 48
Several products already have launched, and as a percent).
trend it’s showing signs of moving into maturity. This, This net sentiment is particularly interesting in
coupled with the ongoing uncertainty surrounding comparison to said ingredients when you consider
legislation restrictions, means that if you’re a food some of the negative associations and hang-ups
and drink innovator looking to gain a first-mover consumers still perceive CBD and kava to have. Could
advantage, you should perhaps turn your attention L-Theanine be a safer ingredient that can be added to
elsewhere. beverage products to deliver on the plant-based and
This is where Trendscope can help by giving you nootropics macro-trends we see growing?
an overview of all the category themes, benefits and GABA – the outside bet?
ingredients — allowing you to determine between
what’s a short-term fad and a long-term trend. Your
Maturity
business can then prioritize the fast growing trends that #197 phase:
will sustain growth into the future. TPV rank* Growing
Kava – risk and reward?
Maturity 4,850 +7%
#3 phase: conversations YoY
TPV rank* Growing *Of 1,400 category ingredients

Although smaller in volume, GABA – a chemical


15,150 +12% naturally made in the human brain — has a high
conversation growth rate, which is predicted to
conversations YoY continue in the next sixmonths at least. Again, GABA
*Of 1,400 category ingredients
has similar sleep aid and stress reduction benefits
Although three times smaller than CBD, mentions of to the ingredients previously mentioned but like
kava in beverage conversations are growing. Described L-theanine, it is strongly associated with a healthier
as “chamomile on steroids,” it’s been historically brewed brain, mental energy and performance.
in hot drinks as a cure for insomnia. But other interesting Of all ingredients mentioned, GABA is the least
benefit associations include stress reduction, mood well known, ranking just inside the Top 200 ingredient
boosting, gut-friendly and even increasing one’s libido. trends. Whilst it typically ranks beyond where
Ranked just behind CBD in Trendscope at No. 3, we we would normally place emerging new trends,
predict it has a high likelihood of mirroring cannabidiol’s Trendscope predicts growth is set to continue in the
rise. Whilst clearly one to watch, a note of caution next sixmonths. Therefore, it could be of interest if
regarding kava: excessive usage has been linked to you’re looking to exploit a niche or get ahead of the
negative health effects. As a result, kava has been banned market.
from Europe and Canada (but not in the United States).
Thus, much like CBDs, legislation uncertainty might lead CBD LATTE, ANYONE?
you to look elsewhere for a safer and more stable big From analyzing social data we’ve seen, it’s highly
ingredient innovation. likely that we’ll all soon be enjoying CBD infused
L-Theanine – The safer bet? lemonades, lattes and lagers. However, product
innovators on the front foot already know that this is
yesterday’s news.
Maturity
#91 phase:
Instead, Trendscope identifies alternative
ingredients such as kava, L-theanine and GABA,
TPV rank* Mature which are less well-known, and still relatively small,
but predicted to accelerate in 2019 and beyond.
11,4000 +2% This is valuable information for innovators and
brand managers as it removes uncertainty and
conversations YoY speeds up decisions by using data science to predict
*Of 1,400 category ingredients
which ingredient “bets” you should be placing
L-theanine is an amino acid found most commonly your innovation dollars on. Ultimately, helping
in green and black tea leaves but also in small amounts you develop better products, that satisfy genuine
in bay bolete mushrooms. Classified by Trendscope as consumer needs of the future, sooner. BI
a mature ingredient trend, meaning it’s sizeable but has
a low rate of conversation growth, L-theanine ranks With thanks to Black Swan Data for the data and analysis provided.
lower in the tool than CBD and kava (although still in Black Swan specializes in applying AI to social data to identify
the top 10 percent of overall ingredients). emerging consumer trends and predict shifts in consumer behaviour
Like CBD, consumers associate its benefits with earlier and more accurately than anyone else. To find out more,
treating anxiety and high blood pressure. But it’s visit blackswan.com

bevindustry.com | JANUARY 2019 | Beverage Industry | 51


Beverage

CREATOR’S BRIEFS
COMAX TASTEPOINT BY IFF ultimate decision-maker. The
FLAVORS OPENS HOST FIRSTASTE EVENT 20 percent juice sweetened
INNOVATION CENTER Tastepoint by IFF recently hosted a taste innovation drink served up 7 grams of
Comax Flavors announced event called FirsTaste geared toward inspiring, pea protein and 1 gram of
the completion of the Dr. providing insights, know-how and depth of watermelon seed protein in a
Peter J. Calabretta Center for information to customers, it says. RTD format containing 8 grams
Innovation in Marlton, N.J., One of the main highlights, the Innovation of protein in each 8-ounce
which soft opened July 25, Showcase, took the theme, “A Fresh Take on Taste,” serving.
2018. The new Center for and included more than 20 new product designs, The following were
Innovation comprises 3,600 flavors and technologies. The showcase featured additional beverage industry
square feet and features innovative concepts produced by the company’s concepts and creations
state-of-the-art application creative and applications team. available:
and flavor labs as well as Playing off of the plant-based trend, Tastepoint Oat relaxation beverage: Relaxation beverages are
customer conference and shared a plant-based tahini beverage. Made from on the rise and this honey lavender oat dairy drink
tasting rooms. sesame paste, this beverage boasts a 60 percent is derived from oat straw. Modulation tools help to
“Our new center is an area for creative inspiration sugar reduction as compared with traditional reduce the sugar without compromising taste, it adds.
designed to assist our customers with the proactive sweetened plant-based milk alternatives, and the Cascara-flavored beverage: Sustainability and
development of innovative ideas, flavors and products overall perception is improved with natural mouthfeel waste-reduction trends have turned the outer skin of
and help grow their success in an ever-changing and and sweetness modulation flavors in tandem with the coffee cherry into a thriving product whose high
competitive market,” said Michael E. Crain, senior vanilla flavor. Together, the modulation tools and antioxidant levels make it desirable for functional
flavor chemist for Comax Flavors, in a statement. vanilla round out the sweetness profile and contribute beverages, the company says. The cascara flavor
The new facility will allow Comax to work more to the full-body mouthfeel that you’d expect from was showcased in a flavored energy seltzer, boasting
closely with the company’s customer base to provide milk, according to the company. 45 milligrams of caffeine in each 12-ounce serving.
new and innovative product concepts and flavors, With ready-to-drink (RTD) protein beverages Candied cantina: Plays off of the ginger and fennel
enable ideation, creation and rapid prototyping, aid maintaining their popularity, Tastepoint utilized trend and is showcased in vodka and bourbon spritzers.
in customer problem-solving and proactively support masking technology, in addition to creative flavor and French 75-Inspired beverages: These sparkling
Comax’s creative flavor and application capabilities modulation technology, to bring this trend to life, it cocktail combinations featured nostalgia with a twist,
with the R&D teams, it says. explains. Utilizing a natural honeysuckle and nectarine the company says.
■ Comax Flavors, 130 Baylis Road, Melville, N.Y. 11747; flavor, a protein and matcha tea beverage delivers to ■ Tastepoint by IFF, 7800 Holstein Ave., Philadelphia, Pa. 19153;
800/992-0629; comaxflavors.com. those looking for protein but for whom taste is the 800/523-0767; tastepoint.com.

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52 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Ingredient Spotlight

No need to be blue
Berry f lavonoids, IN THE 1997 ROCK SONG “A CHANGE WILL DO YOU GOOD,” MULTI-GRAMMY
award-winning artist Sheryl Crow sings about the importance of change. With
antioxidants
an increased emphasis on health and wellness, the vibe in the beverage industry
boost immunity also speaks to the importance of “changing it up” by manufacturing products with
functional ingredients, including the immune-boosting power of antioxidants.

John Sauve, vice present of marketing at Artemis more natural approach but it can present hurdles in
International, Fort Wayne, Ind., notes the widespread terms of flavor, with many popular superfruit juices
“antioxidant acceptance” permeating the market. presenting significant taste challenges. That’s before
“When a beverage brand like Bai brings the science- you even consider the high cost of most superfruit
based world of antioxidants and free radicals to the juices.”
retail and consumer forefront … and then gets Justin As a solution, Kicoyne suggests using a superfruit
Timberlake in the game, you know there is something juice that’s rich in polyphenol antioxidants, that tastes
going on. great, but won’t break the bank. He also points to
“The macro trend, one that makes the difference, science-backed research behind Concord grape juice.
is the consumer’s growing trust, understanding and “Research has shown that Concord grape juice
acceptance of the need for antioxidants in their daily delivers more healthy polyphenols per serving than
lives, led by a few really big marketers who continue most other popular superfruit juices,” he says. “In
to penetrate the market with ‘all things antioxidant,” one study, Concord grape juice was found to have a
he continues. “The connection of fruits (mostly berry polyphenolic concentration of 2.6 mg GAE/ml. By
flavonoids) and the ‘very active’ antioxidants story contrast, blueberry juice has 2.3 mg, acai and black
is now two decades old since the wild blueberry cherry juices each had 2.1 mg, which cranberry juice
industry introduced the USDA/ORAC assay results had 1.7 mg. Only pomegranate juice outperformed
on antioxidant capacity onto the scene in 1997 — a Concord grape juice with 3.8 mg.”
milestone marketing event for building the awareness
and interest in antioxidants.” DEFEND TO THE END
Thomas J. Payne, industry specialist to the U.S. According to Webster’s dictionary, antioxidants
Highbush Blueberry Council, San Mateo, Calif., notes are “substances that oppose oxidation or inhibit
the emphasis on natural, wholesome ingredients plus reactions promoted by oxygen or peroxides.” Simply
health and wellness, which has had a favorable impact put, antioxidants contained within beverages
on blueberry beverage development. or food defend the body against cell-damaging,
“Consumers equate blueberries with antioxidant unstable molecules known as free radicals and stop
power and consequently readily accept them as the destructive process of oxidation, says Randy
an ingredient in almost any product,” Payne says. Kreienbrink, vice president of marketing for BI,
“There is always a lot of interest in blueberries as the Rancho Dominguez, Calif.
antioxidant superfruit, especially since blueberries are “The ongoing clean-label evolution continues in
often referred to as the original superfruit. the beverage space,” he says. “Raw, fresh, natural,
“Not only do blueberries have an all-American organic and non GMO [are] all trends pushing for
association, [but] as a native American fruit, they are botanicals to be used in beverages.”
an excellent choice for product developers who want to Kreienbrink lists several ingredients containing
project a responsible carbon footprint,” he continues. phytochemicals, antioxidants and natural vitamins
Blueberries and fruit in general have a positive image and minerals that might help the body ward off the
among consumers who consider fruit an almost- common cold and aid in cancer prevention. These
guiltless “right choice,” Payne adds. “Blueberries include guayusa, green tea, guarana, kola nut,
appeal to the fastidiously health conscious as well as turmeric, yerba mate, tamarind, hibiscus, rose hips,
to unapologetic pleasure-seekers,” he says. “With their passion flower, acai, blueberry, cranberry, papaya,
fruity burst in the mouth flavor and healthy profile, faba bean, pumpkin seed, acerola, chi and quinoa.
blueberries give products lush taste, broad appeal and Due to consumer demand, beverage-makers are
clean labels.” adding these natural ingredients in a variety of
Kevin Kilcoyne, vice president and general manager ready-to-drink juices, teas, carbonated soft drinks,
of Welch’s Global Ingredients Group, Concord, Mass., waters and more.
suggests there are two ways to make an antioxidant- New products and ingredients continue to burst
rich beverage: add functional ingredients to a base onto the scene. For instance, GacLife LLC offers gấc,
formulation, or use a superfruit juice with polyphenols a line of health and beauty waters, which uses the
>>

Known as the “fruit from heaven,” gâc offers a self- as the base to provide health-related benefits. vibrantly-colored, orange-reddish superfruit found
titled line of health and beauty waters in 12-ounce “The first option might be cheaper, but can present in indigenous Southeast Asia, in 12-ounce slim cans
slim cans, which contain 20 mg of natural carotenoids
from pure gâc juice, the company says. (Images challenges in terms of maintaining a clean label,” in six flavors: Lemon, Pineapple, Peach, Sparkling
courtesy of GâcLife LLC) Kilcoyne explains. “The second option is usually the Mango, Sparkling Lemon and Sparkling Passionfruit.

54 | Beverage Industry | JANUARY 2019 | bevindustry.com


By Barbara Harfmann

“Berries like black elderberry and aroniaberry


sit at the top of the list of natural antioxidant
powerhouses,” she continues. “Recent science
has reinforced the strong link between systemic
inflammation and oxidative stress, with an imbalance
of the two markers a key player in most disease states
raging from cognitive impairment to cardiovascular
disease to a stressed immune system and even cancer.
Studies have shown that the flavonoid compounds
in berries, including anthocyanins, can effectively
modulate these imbalances, positively impacting
multiple areas of health.”
In addition to providing potent antioxidants,
red-purple anthocyanin color pigments provide
a natural colorant, which eliminates the need for
>>

Antioxidants are inherently present in rich purple


pomegranates. POM Wonderful 100% Pomegranate Juice other natural or artificial colors, Bush adds.
contains two whole pomegranates in each bottle, Adam When formulating with antioxidants, Bush notes
Cooper says. (Image courtesy of The Wonderful Co.) that the anthocyanin color pigments in their natural
state might cause an astringent flavor profile.
Each can contains 20 mg of natural carotenoids from However, she suggests this can easily be corrected
pure gấc juice, 15 calories and 2 grams of sugar in by adding a sweetening agent. She also advises that
each bottle, the company says. clear or yellow beverages as well as certain milk-
Known as the “fruit from heaven,” gấc fruit based/yogurt drinks would not be the best fit for
contains high level of carotenoids, an antioxidant that utilizing anthocyanins in the red-purple range.
contains 70 times more lycopene than tomatoes, 75 Welch’s Kilcoyne also notes the drawbacks of
times more vitamin A than leafy greens and 10 times formulating with on-trend wellness ingredients
more beta-carotene than carrots, it says. like antioxidants, polyphenols and adaptogens.
Bai, a wholly owned subsidiary of Keurig Dr “It’s a dilemma that many nutrition companies will
Pepper, Burlington, Mass., and Plano, Texas, offers recognize and understand,” he says. “Traditionally,
Bai Antioxidant Infusion, a line with 10 flavors that a common way to address this problem has been
contain fruit flavors and antioxidants. One of the to use added flavors, masking agents or sugar, or a
brand's main sources for antioxidants comes from the combination of these.
coffee fruit used in its beverages. “However, such ingredients can compromise
Adam Cooper, vice president of marketing the integrity of a product in terms of its clean-
for Los Angeles-based The Wonderful Co., notes label status and health profile,” he continues. “A
that antioxidants are inherently present in POM convenient solution is to formulate a nutrient-rich
Wonderful 100% Pomegranate Juice. Two whole beverage using a 100 percent fruit juice that will
pomegranates with nothing else added are used in offer a flavor that is bold enough to disguise any
each 8-ounce bottle, he says. unpleasant notes, but which will also be a good fit
“Our research has revealed that consumers of POM for the overall product concept.”
Wonderful 100% Pomegranate Juice often turn to As consumers continue to seek healthier options
the beverage after experiencing a health awakening in what they eat and drink, The Wonderful Co.’s
— a moment in time that makes them reassess their Cooper highlights that antioxidants are being
health choice,” Cooper says. “Once learning about sought by 72 percent of baby boomers, 73 percent of
the benefits of drinking POM Wonderful, consumers Gen-Xers and 66 percent of millennials.
incorporate the beverage into their lifestyle, which “The antioxidant profile of POM Wonderful 100%
has been a significant driver to our growth.” Pomegranate Juice is a key product differentiator,”
Despite the decline in the overall juice and juice Cooper says. “Research on the many potential
drinks market, POM Wonderful and its super- benefits of polyphenols is ongoing and still
premium 48-ounce 100% Pomegranate Juice saw emerging. We expect that as the effect of these
sales increase 7 percent during the 52 weeks ending antioxidants on the body are better understood and
Aug. 17, 2018, he adds. known to the general public, more individuals will
turns to foods and beverages that naturally offer
BERRY TO BOTTLE these benefits.”
In addition to pomegranates, Melanie Bush, chief Artemis’ Sauve agrees: “The fabulous world of
science officer at Artemis International, says ingredient berry flavonoids will become remarkably active in
suppliers would be hard-pressed to find any Top 10 the research arena as scientist (and health-based
list that doesn’t include berries as natural antioxidant companies) keep searching for the evidence and the
sources. pathways by which flavonoids perform their magic
“The red-purple color pigments of berries, called in the human body,” he says. “That will likely take a
anthocyanins, are naturally potent antioxidant while. In the meantime, the body of knowledge and
compounds that are linked to the health benefits of evidence surrounding these fabulous flavonoids
>>

Antioxidants are one of the main sources of


berries,” Bush says. “The darker the berry, the higher … will help fortify and amplify the nutrient and
ingredients within Bai Antioxidant Infusion line,
the anthocyanin content, and therefore, the higher the phytonutrient richness of products that ‘do good according to the company's website. (Images
antioxidant capacity. things’ to our bodies.” BI courtesy of Keurig Dr Pepper)

bevindustry.com | JANUARY 2019 | Beverage Industry | 55


Distribution By Jeff Cioletti

Texan tenacity
Del Papa Distributing DEL PAPA DISTRIBUTING, VICTORIA, TEXAS, CAN TEACH OTHER WHOLESALERS

rises in face of a thing or two about weathering the storm — literally and figuratively — including
the challenges wrought by both Mother Nature and the nature of the rapidly
market challenges evolving beer distribution landscape.
It’s unfortunate that any operation has to become areas.” From a delivery standpoint, bulk trailers
adept at natural disaster preparedness, but lately are far more efficient, but they pose a problem in
it’s been a sign of the times. And Del Papa’s location those narrower locations. Even though Del Papa is
puts it in the middle of hurricane territory. The following the national trend of shifting toward end-
most recent one to strike was last year’s devastating loaders, it does keep a few side-loaders in its fleet for
Harvey and the Anheuser-Busch (AB InBev) those specific environments.
wholesaler had to ensure that its three distribution Then, there’s the perennial challenge of recruiting
centers in Texas City, Beaumont and Victoria, Texas, and retaining CDL drivers. As a work-around, Del
were all up and running in its aftermath. Papa has explored expanding its use of smaller
“It involves a lot of planning with our leadership trucks that don’t require CDLs to operate.
and trying to identify which areas that we could An added wrinkle is that Del Papa operates in the
actually deliver to immediately after the storm and heart of the petrochemical industry. “So, when the
keeping our guys out of harm’s way and out of areas oil business is booming, they tend to need a lot of
where they shouldn’t go,” says Eric Joseph, Del drivers and we tend to lose them to that industry,” he
Papa’s vice president of operations. “It’s basically us explains. “I’m not sure the rest of the country deals
DEL PAPA DISTRIBUTING having a war-room-like scenario where we identify, with that as much, but each area has its own issues.”
‘ok, what stores are open and can we go there?’” An issue that everyone faces, regardless of what
Beaumont, Texas City and Victoria, Texas Usually in such scenarios, Del Papa delivers a area they’re in, is figuring out new ways to reduce
Annual case volume: 10.6 million limited set of SKUs, mostly the high-volume brands, fuel consumption. Del Papa has had some success
just to ensure that it can get product on the shelf. reducing its drivers’ idle time. After five minutes of
Total employees: 385 total (62 drivers)
“Typically we’re working with a skeleton crew idling, the vehicles automatically shut off. “In the
Key suppliers/brands distributed: AB InBev, because, like in the instance of Harvey, some guys past, the guys would just leave the truck running
Constellation, St. Arnold’s, Karbach and couldn’t get to work because they were flooded in,” for however long they were in the account,” Joseph
Galveston Island Joseph says. recalls. “We don’t allow that.”
Delivery areas: 17 counties along the Additionally, many suppliers’ products can’t get Additionally, the tractors have been governed to
Gulf Coast of Texas with distribution centers to Del Papa’s warehouses and it’s a matter of what’s 65 miles an hour.
in Texas City, Beaumont and Victoria, Texas. already in stock, he explains. “Unfortunately, we’ve Route optimization is another key. Encompass
Fleet makeup: nine eight bay trucks, five16 kind of gotten good at this sort of thing, with some of Technologies supplies Del Papa’s route accounting
bay tractor/trailers, 42 rear-load tractor/ the stuff that’s happened around here lately.” system and a couple of times a year, the software
trailers. The tractors are International, Fortunately, though, most of the year Del Papa’s reps lead routing exercises to help ensure that the
rear-load trailers are Utility and side- load is not having to deal with natural disasters, just wholesaler is running as efficiently as possible.
trailers are Hackney. the usual, day-to-day challenges that pervade the “They’ll come down and help us map out all of
beverage distribution industry. Right-sizing the our accounts and just make sure they’re routed
vehicles in its fleet is efficiently, that we’re not double-tracking if we don’t
one of those ongoing have to, trying to keep everything in sequence where
issues. it makes sense,” Joseph says.
“There are a lot This past year, the company partnered with
of different market GeoTab for its GPS solution, which has provided
demands and trying valuable diagnostic information that Joseph and his
to right-size a vehicle team are able to see in real time.
to meet all of the “So, if the engine’s overheating or the driver’s
different demands we speeding, we get those alerts, generally in real time,
face is a challenge,” that we can act upon,” Joseph adds. “That has helped
Joseph notes. “And us control some behaviors with our drivers.”
what I mean by that As the new year has just begun, Del Papa has
is we typically have resolved to enhance its investment in driver safety.
rear-end-load trailers The distributor currently is in discussions to install
— we’re 90 percent in-cab cameras, facing in and out of the vehicle.
rear-end load — but The company also has been purchasing tractors
then trying to find the with blind spot warning systems to alert drivers
right-size trailer to to any vehicles in the lanes into which they’re
>>

Del Papa Distributing’s fleets are equipped with route optimization and use automatic vehicle
shut-off after five minutes of idle time. (Image courtesy of Del Papa Distributing/Jeff Cioletti)
fit some of the tight switching. BI

56 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Operations

Crafting cleaner consumption


Reusable packaging AS THE U.S. POPULATION GROWS, IT STANDS TO REASON THAT THE AMOUNT

systems improve of pollution produced grows with it. Research and policies regarding waste have
been prevalent for many years now and the consumables market is doing its part
manufacturers’ to lessen the environmental burden. Determination for creating a greener earth is
footprint driving beverage suppliers and consumers to reduce, reuse and definitely, recycle.
For instance, the Florence, Ky.-based National ■ Reduced waste management costs: less waste to
Association for PET Container Resources and the manage and less labor required to prepare waste
Washington, D.C.-based Association of Plastic materials
Recyclers announced a recycling rate of 29.2 percent ■ Environmental impacts: reduced greenhouse gas
for PET plastic bottles in 2017. This percentage is emissions and overall energy consumption
slightly higher than the 2016 rate of 28.4 percent,
reflecting a decrease in both total collection volumes ALL-AROUND ASSETS
and volume of PET bottles available for recycling in As beverage companies strive to improve their
the United States, the associations reported. environmental impact, new trends and packaging
However, primary packaging materials are not materials are meeting consumer preferences for
the only ways in which suppliers are furthering the sustainability.
sustainability movement. The requisite for consistent As a result, beverage companies are diversifying
return-on-investment (ROI), accurate reverse logistics their product offerings to meet emerging consumer
and standardized deliveries motivates beverage needs, according to ORBIS’ Zitzke. “More consumers
industry players to implement reusable packaging want authentic craft beverages, so small-scale
systems. manufacturers and distributors are focused on
“The reusable packaging market is embracing delivering specialty products,” she explains.
growing conversations and awareness around “Because specialty products are transported in
environmental sustainability,” says Alison fewer quantities, packaging — such as reusable
Zitzke, senior product manager for ORBIS Corp., handheld totes — that can accommodate smaller,
Oconomowoc, Wis. “Manufacturers continue more frequent shipments is required. Also, with
to produce innovations for new and evolving the increase in mindful consumption, consumers
sustainability trends and industry needs. The more are buying healthier alternatives. As a result, sleek
reusable solutions there are in the industry, the more 12-ounce cans are being used over traditional cans,
sustainable options supply chains have to improve which can impact the design of reusable packaging.”
their environmental impact.” Manufacturers also are introducing new ways to
Reusable packaging systems not only minimize reduce labor needs and the number of touchpoints
a company’s carbon footprint, but can provide during delivery, Zitzke says. “One packaging
monetary benefits, experts note. In Linden, Va.-based solution is mobile merchandising,” she says.
Reusable Packaging Association’s (RPA) 2016 report “Reusable packaging — such as pallets and totes that
titled “Think Outside the Box: Think Reusable,” have a mobile mechanism — makes transporting
the association outlines the monetary benefits of product from the truck to the store aisle, or storage
implementing reusable packaging systems: room, more seamless and less labor intensive.”
For example, the company manufacturers the
■ Improved ergonomics and worker safety: ORBIS Pally, which is a combination of a pallet and a
standardized package weights, sizes and materials dolly. “It can switch from static to mobile mode with
reduce risk of injury one press of its pedal,” Zitzke explains. “This saves
■ Reduced inventory time at delivery so more focus can be put toward
and just-in-time delivery: customer service.
standardized packaging and “Another solution is small-format packaging,”
ordering quantities improve she continues. “Reusable packaging with smaller
tracking, reduce errors and dimensions improves efficiencies during the delivery
the amount of time inventory process. As more retailers decrease brick-and-mortar
is idle and nonproductive footprints, they will need small-format pallets and
■ Quality improvements: totes that can easily fit through tighter doorways and
durable, uniform containers aisles.”
stabilize loads and prevent Zitzke also details how bulk loads and
product damage transportation demands are impacting the reusable
■ Packaging material cost packaging market. “Reusable bulk containers offer
reductions: longer useful many transportation efficiencies for bulk loads,”
>>

The ORBIS Pally is a combination of a pallet and a dolly that can switch from
static to mobile mode with one press of its petal, Alison Zitzke says. (Image life means less replacement she says. “Their durable, heavy-duty design
courtesy of ORBIS Corp.) materials allows maximum fill volume — such as the ORBIS

58 | Beverage Industry | JANUARY 2019 | bevindustry.com


By Taylor Karg

MAXCUBE — and maximum storage and return visibility, reduced manual shipment logging,
ratios – such as the ORBIS OpteBulk.” uncovering loop inefficiencies, improved packaging
“For maximum truck packout, manufacturers are utilization and reduced packaging loss,” ORBIS’
introducing right-sized bulk containers to fit more Zitzke says.
containers per truck and more pack designs than ORBIS offers a range of tracking solutions to
traditional bulk packaging,” she adds. help manage reusable packaging systems. “ORBIS
The ORBIS MAXCUBE, a 40-by-48 or 45-by-48-inch Reusable Packaging Management services include
reusable bulk container, and the OpteBulk, are used the use of its proprietary ORBIS SmartTrak software,
for primary packaging components such as beverage which integrates with customers’ systems and
preforms, caps and closures, Zitzke says. accepts data input from different technology
The company also designs inbound beverage solutions,” Zitzke says.
pallets, top frames and layer pads, typically used by “With ORBIS SmartTrak, companies can monitor
can and bottle manufacturers. their packaging and have visibility of inventories,
Before beverage-makers and distributors invest in-transit quantities and historic data.”
in reusable packaging, several factors should As experts have noted, companies that combine
considered, experts note. reusable packaging, like pallets, with management
“Beverage-makers and distributors should systems, can not only achieve a higher ROI, but can
consider their supply chain loop,” Zitzke says. significantly reduce their environmental impact.
“Reusable packaging systems are best managed For example, this past October, the RPA announced
in a closed-loop supply chain. Because reusable Anheuser-Busch InBev (AB InBev) as one of the two
packaging is meant to return to its original user, winners in the 2018 Excellence in Reusable Packaging
track and trace technology, such as barcodes and award program.
radio-frequency identification (RFID) or GPS, can “Anheuser-Busch InBev (AB InBev) won for their
help ensure packaging makes a complete loop design and implementation of a comprehensive
successfully. maintenance, reusable pallet, and logistics system
“This decreases packaging loss, regulates cleaning that significantly reduced waste, increased reusable
and maintenance, and further protects users’ packaging lifespan, and reduced CO2 impact by
investment to achieve their [return-on-investment] 30 percent,” the association said in a statement at the
ROI targets,” she continues. “Packaging management time of the announcement.
services such as ORBIS’ Reusable Packaging Although the benefits of using a reusable
Management, can help companies put a management packaging system likely outweigh the drawbacks,
system in place to track and maintain their reusable it does have its associated challenges, experts
packaging fleet.” say. “When not managed properly, supply chains
The RPA also touts the feasibility of closed-loop can skip crucial steps in the reusable packaging
systems. “Closed-loop systems are ideal for reusable ownership process, such as repairing damages,
transport packaging,” the report states. “Reusable tracking proper movement, and properly cleaning
containers and pallets flow through the system and and sanitizing the packaging,” ORBIS’ Zitzke says.
return empty to their original starting point (reverse “Improper management can create waste due to
logistics) to begin the entire process again.” lack of visibility, leading to unplanned downtown,
When it comes to reusable packaging systems, lower productivity and packaging loss,” she
the association also recognizes pallet and container continues. “It also could hinder ROI measurement if
pooling as an alternative option. “With pallet and the number of trips per year cannot be calculated due
container pooling, companies outsource the logistics to unreturned packaging.
of pallet and container management to a third-party “However, with the right education and service
pooling management service,” the report states. “The provider, a management system can be implemented,
pallets are delivered to the companies; palletized so savings and efficiencies are quickly realized,” she
products are shipped through the supply chain; then says.
a pallet rental service picks up the empty pallets and As consumers trend toward decreasing their
returns them to service centers for inspection and environmental footprint, beverage-makers and
repair. Pooling pallets are typically made of high- distributors work to do the same. The proliferation of
quality, durable wood, metal or plastic.” reusable packaging systems and materials likely will
Open-loop shipping systems also are an option, continue as sustainability stays top of mind.
according to the RPA. Open-loop systems require “The beverage industry can expect to see more
the assistance of a third-party company, who sets up mobile packaging options and bulk delivery
the pooling network to facilitate the return of empty systems,” Zitzke says. “Because of the increase in
reusable transport packaging (reserve logistics), it aluminum can production — a 20 percent increase
says. The pooling management company also might since 2011 — more bulk, lightweight solutions will
provide various services such as supply, collection, be needed to ship more product per trip. This, paired
cleaning and repair of reusable transport packaging, with mobile distribution solutions, results in a more
it adds. efficient retail supply chain, from warehouse to the
aisle, in less time and with less hassle.”
PUTTING IT ALL TOGETHER As SKUs constantly grow, beverage supply
Certain management systems like tracking systems, chains strive to maximize their ROI, by realizing the
>>

ORBIS designs reusable beverage pallets typically


play an important role in the reusable packaging environmental and all-around business benefits of used by can and bottle manufacturers. (Image courtesy
industry. “A few of the benefits include asset implementing reusable packaging systems. BI of ORBIS Corp.)

bevindustry.com | JANUARY 2019 | Beverage Industry | 59


Operations Perspective By John Peter Koss

The need for flexibility


Adaptable THROUGHOUT THE BEVERAGE SUPPLY CHAIN, MANUFACTURERS AND
distributors have found that the SKU explosion has created impacts resulting in
configurations
constantly changing operating conditions, making maintenance a necessity for a
necessary for f lexible manufacturing infrastructure.
manufacturing Consider the input/output scope of the supply workstations. Beverage-makers should pose the
chain and a logical starting point for reviewing question: what are flexibility possibilities at each of
and evaluating the possibility of using flexible these stations?
machinery and equipment is found in the processing Some views, comments and questions based on
department. When producing beverages — whether observation and study from filling operations to product
it’s sparkling, still, alcohol or non-alcohol — storage can exemplify the flexibility potential that exists
variables like materials, process time and equipment not only with machine and package design, but also with
capability/capacity are usually quite different; line layouts and personnel utilization for any packaging
therefore, existing infrastructure configurations configuration. The following are hypothetical situations
might or might not have the flexibility required to that could emerge in a beverage facility:
process a variety of beverage products and packages. Should movement from container input workstations
From an operations perspective, the main flexible to on-line use require different kinds of conveyors? Yes,
manufacturing objective is to possess and utilize an the type used does depend on the container.
infrastructure throughout the supply chain that can
economically produce many types of beverages without QUESTIONS:
the expense of additional space, equipment, technology Can one type of conveyor handle all sizes of cans,
and labor that might be required. In the beverage arena, plastic bottles and glass bottles? Research indicates at
differences can significantly vary based on product this time, no. Some conveyors have been modified to
types (materials, handling, etc.); therefore, depending help answer these questions, but currently, one type
upon what beverage category is being manufactured, of conveyor capable handling all these configurations
producers might be confronted with how much would be flexibility utopia — extreme innovation.
potential exists for a flexible application. Because major Substantiating the point, the next workstation, rinsing
differences exist, the analysis and evaluation of product (washing) also must be flexible enough to handle all
types and characteristics are important steps in the these containers. The industry is not quite there yet.
flexibility consideration process. The filling workstation (including conveyors and
For example, some products might require “batch” closing machines) is critical, which leads to the next set
type processing, which usually involves mixing, aging of questions.
and holding tanks with temperature, weight, and/ How flexible are beverage fillers? Can different
or volume control. This also might involve adding containers be accommodated on one filler? How
ingredients by either manual or semi-automatic many products can be handled and at what speeds
methods. There also are other products with different and will filling accuracy be maintained? These issues
characteristics that cannot be batched, and lend have been on the table for more than 50 years. They
themselves to complete or partial bulk handling. have been partially answered, but the equipment
Therefore, these materials must be integrated into an manufacturers have not reached Mars. To this point,
“inline” type of finished product processing where no container conveyors have been integrated into what
tanks are needed, and the inline streams directly flow fillers and closing machines can accommodate, that
from processing to production. is a fact. Now, the flexibility challenge moves to
In each case, product type and/or characteristics packaging configurations.
might not permit either process being used as an Equipment manufacturers always have developed
alternative, thereby reducing the flexibility option. packaging machine types (board wraps, basket carriers,
However, even though complete flexibility might plastic handles, shrink film and other forms) with
not be possible, product groups with compatible partial or complete manual change parts for flexibility.
characteristics can often be an alternative. However, with the entry of various multi-packs,
Due to the complexity of beverage processing, true changed operating conditions have received integrated
manufacturing flexibility is allusive. Yet, all of the automatic changeover flexible capability.
ensuing steps — from packaged production to pre- Similar flexibility potential exists under most
distribution — have seen and will continue to see plenty operating conditions at each workstation (packaging
of innovative opportunities for manufacturing flexibility. to palletizers) as well as the actual line layouts (using
Following the beverage chain from processing to combined machines or personnel assignments). This
John Peter Koss, the Beverage Operations
packaging usually dictates how, where and when the is true because in today’s beverage environment, the
Advisor, has more than 50 years of
beverage industry experience, is a licensed product is handled with little or no options at the actual type of equipment and the packages capable of being
registered professional engineer, and can filling point; therefore, the real flexibility challenge handled must possess a higher degree of flexibility than
be contacted at [email protected]. begins after filled containers continue to subsequent in the past. BI

60 | Beverage Industry | JANUARY 2019 | bevindustry.com


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NEWS
Milwaukee-based Universal Robots (UR)
is merging its Boston office with Rethink
Robotics’ Boston-based headquarters
and hiring more than 20 former Rethink
employees. The move will reinforce both
companies’ roles in collaborative robotics
and Rethink’s personnel will bring
valuable expertise in engineering, product
development and customer applications to
UR, the company says.

Flexible Pack, Quincy, Mass., named


Nicole Laroche as business development
executive. In this role, Laroche will be
Palletizing connectivity speeds of as many as 200 containers a minute. With the
Honeywell Intelligrated offers connected solutions capability to pack tapered cups, bottles, and a range of
responsible for acquiring new business
for automated palletizing equipment in end-of-line other rigid container shapes and styles, the top-load case
and ensuring products are customized to
manufacturing environments. By leveraging data packing system offers maximum flexibility for minimum
customers’ specific requirements in an from machine-level sensors, the company provides investment, the company says. The machine comes with
effort to augment their overall success. real-time equipment monitoring, diagnostics and a variety of configurable options, which enables it to
Laroche will work with businesses from all asset-level insights to boost reliability, throughput load containers into multiple secondary packaging
industries, with specific focus on breweries, and performance, it says. The Alvey 890i palletizer styles. These styles include trays or tray-shrink
cannabis and food packaging industries. is equipped to handle a wide range of packaging packaging, standard brown box shipping cases, and
types, small and difficult-to-handle products in a patented, retail-ready Delkor Turbo Case packaging
Vista, Calif.-based Flux Power Holdings variety of stacking patterns. An intuitive touchscreen as well as the economical Spot-Pak packaging. The
Inc. (Flux) reported that first quarter 2019 interface offers easy access to advanced diagnostics. machine’s modular design and offset infeed conveyor
revenue increased to a record $1.84 million The palletizer also features a maintenance-friendly allow for ultra-compact layouts with an optional
for its first quarter ending Sept. 30, 2018, design, real-time monitoring and diagnostics to integrated case erector and/or case sealer to further
vs. first quarter 2018 revenue of $153,000. help increase reliability and minimize downtime in minimize footprint. The Performance Loader is servo
First quarter 2019 results also increased 67 beverage and consumer packaged goods operations. driven for speed and precision, while enabling quick
percent from fourth quarter 2018 revenue ■ Honeywell Intelligrated, 7901 Innovation Way, Mason, format changes through pre-programmed product
of $1.1 million. The first quarter 2019 Ohio 45040; 866/936-7300; intelligrated.com. recipes. It also is equipped with 3-D printed pickup
performance was driven by large customer heads and can be integrated with a plant’s new or
adoption of lithium-ion industrial batteries, existing case erectors, sealers and wrappers.
the company says. Mini robots, major function ■ Delkor Systems Inc., 4300 Round Lake Road W.,
Yaskawa Motoman Robotics recently introduced its St. Paul, Minn. 55112; 800/328-5558; delkorsystems.com.
Kinedyne LLC, Branchburg, N.J., announced new MotoMini robot, a small, lightweight six-axis
that Paul Wolford, vice president of sales robot. Designed to take small part-process to the next
and marketing, passed away Nov. 15, level, the MotoMini offers high-speed performance
2018. “Paul’s courage, strength and dignity and its 7-kg weight facilitates easy transportation and
installation, making it ideal for tabletop-, floor-, ceiling-,
through his long battle with cancer are a
tilt- or wall-mount installations, it adds. Equipped
testament to his dedication and devotion to
with high acceleration, MotoMini is 20 percent faster
all who knew him. He led by example, and
than comparable small robots to reduce cycle time and
his many contributions, as a person and
increase production output, it says. Additionally, the
as a leader, touched each of us,” said Dan robot’s 0.5-kg payload supports a variety of tooling
Schlotterbeck, president of Kinedyne, in a and sensors to fulfill diverse project needs. It is ideal for
statement. Wolford’s career in the commercial applications such as assembly, dispensing, inspection,
vehicle industry spanned nearly 40 years, the kitting, machine tending, material handling, packaging,
majority of the time at Kinedyne. parts feeding, sorting and STEM education. The ultra-
compact design enables installation in factories with An energy-saving coding ink
France-based Gebo Cermex, in partnership high-density layouts, and the compact footprint allows Linx Printing Technologies Inc. launched a new
with the Sidel Group, has manufactured the robot to be mounted close to workpieces and other returnable ink: Linx Black bottling ink 1068. The
an efficient, complete canning line that has machinery in existing lines or cells. The MotoMini ink enables the reuse of glass bottles in the drinks
not only enabled Heineken Vietnam to is controlled by Yaskawa’s new ultra-compact industry, the company says. Once the ink has been
boost beer production, but to do it with an YRC1000micro robot controller, which can be installed used for printing batch and date codes, the bottles
eye toward sustainability. The line consumes vertically, horizontally, or mounted in a standard are returned. The ink is then removed in the bottle-
less energy and water and contributes 19-inch equipment rack. washing process, enabling new codes to be printed
to a good return on investment, the ■ Yaskawa Motoman Robotics, 100 Automation Way, onto them ahead of reuse. The Linx bottling ink
companies say. Gebo Cermex also combined Miamisburg, Ohio 45342; 937/847-6200; motoman.com. clearly prints onto glass in cold-fill bottling and in
sustainability with performance when it humid environments, the company says. The ink also
engineered and installed SWING, which resists removal when subjected to pasteurization,
provides an ideal solution for pasteurizing, Packing performance ice water immersion, refrigeration or when stored in
heating or cooling cycles for cans of all Delkor Systems unveiled a new, affordable Performance a warehouse for long periods of time. The marking
formats and styles. The simple-to-operate Loader with the ability to pack cases, trays and flat pads codes on beverages reduces the likelihood of product
can filler offers ergonomics, a safe in compact footprints. The mid-range case packing recall, it adds.
architecture and is easy to maintain and system for rigid containers is designed with key ■ Linx Printing Technologies Inc., 8 Stocks Bridge Way,
clean, the companies say. performance features in mind, including pick-and-place St. Ives, Cambridgeshire, PE27 5JL, United Kingdom;
gantry and an innovative infeed system to reach loading +011/44-0-1480-302-100; linxglobal.com.

62 | Beverage Industry | JANUARY 2019 | bevindustry.com


machine features fast changeovers and NEWS
can switch from PET to cans or glass Smyrna, Ga.-based Trio Vision LLC,
bottles in about 20 minutes, the company manufacturer of technology solutions
says. The companies’ multi-functional
for the wastewater market, launched
system offers a variety of capabilities,
a new website for AssetDMS, its
such as the ability to fill glass, PET and
cans, handle a wide variety of forms and NASSCO Certified PACP Data Collection
various lid shapes for non-carbonated Software product line. The new website,
and carbonated beverages with hot- and assetdms.com, provides in-depth
cold-filling techniques, the companies information regarding data collection
say. Since its launch in 2017, GEA VIPOLL software solution for municipalities and
has designed the combined rinser-filler- contractors that are looking for a simple
capper-seamer for customers in Australia, to use, yet detailed data collection and
Croatia, Sweden and South Africa. The analysis tool, the company says. The site
monobloc is a solution for beverage
High-level
Hi h l lddelivery
li producers’ desire for efficiency and
features a distributor, sales and support
staff interactive directory and will soon
The Hyster Co. launched an End Rider innovation, not only in terms of capital
series with industry-exclusive features. be offering a blog component, it adds.
expenditure and operating expenses,
The Hyster B60ZAC2 and B60-80ZHD2 but also procurement, production and
End Rider series is available in single-, Factora Solutions, Alpharetta,
distribution while meeting sustainability
double- or triple-pallets at 6,000 and Ga., promoted Barry Lynch to chief
needs, the company says.
8,000 pound capacities, respectively. executive officer (CEO), while founder
■ GEA Group, Peter–Müller-Str. 12, 40468
The lift trucks are engineered to take on and former CEO Charles Horth steps
Düsseldorf, Germany;
demanding, heavy-duty applications into his new role as chairman of the
+011/49-211-9136-1503; gea.com.
in a multitude of operating conditions, Board. Lynch is focused on growing
including home centers, food distribution customer profitability, delivering on the
and food processing. The pallet trucks Prost, santé, cheers promise of the industrial internet of
are equipped with revolutionary things (IIoT) platform and nurturing the
GrowlerWerks offers the uKeg, which
features and durable components that Factora team, the company says.
is designed to give brewers the ability
allow operations to run faster, leaner
to serve beer that is fresh, cold and
and more efficiently, the company says.
carbonated for as long as two weeks. A
Features include an extended operator
new distribution deal with Brouwland,
platform with more usable foot space
Europe’s largest distributor for craft beer
and cushioning to reduce shock and
equipment and homebrewing supplies,
vibration; LED fork lights and platform
is enabling the uKeg to be available
lights for optimized task lighting; a
patented bidirectional coast that enables
throughout Europe. A regulator cap, Clean Liquid Systems LLC
the operator to control forward traction
equipped with a low-cost, food-grade 7422 Kearney Hill Ln.
carbon dioxide cartridge, partners with a
or slow down and reverse direction while
order-picking; and Intelligent slow down
vacuum-insulated, stainless-steel vessel Spring, TX 77389 Ph:713-253-0100
to make the uKeg’s benefits possible, the [email protected]
and cruise to give operators heightened
company says.
flexibility to adapt to conditions for
improved productivity, load stability and
■ GrowlerWerks, 1690 SE Haig St.; [email protected]
ergonomics, the company says. Portland, Ore. 97202; 971/266-1477;
■ Hyster Co., 1400 Sullivan Drive, growlerwerks.com.
Greenville, N.C. 27834; 800/497-8371; • High Purity liquid filters & RO membranes
hyster.com. Double duty • PRFE media and PFA hardware
Charles Ross & Son Co. offers the DPM-
150, a 150-gallon double planetary mixer • Carbon blocks for taste & chemical removal
with advanced high-viscosity processes.
The mixer features patented high-viscosity
• Pleated & meltblown cartridge
blades, interchangeable jacketed vessels,
electrohydraulic lift, recipe controls with
• High capacity bags and housings
data logger, and an all-stainless steel • Sanitary Stainless Steel housings
sanitary, dust-tight design. The two
identical blades move in a planetary • Stainless mesh filters
motion, rotating on their own axes as they
orbit a common axis. In 36 revolutions
around the vessel, the two blades pass We cross most major brands.
through every point in the product zone,
An all-in-one solution physically contacting the entire batch, Quality products at competitive prices.
At BrauBeviale, GEA and GEA VIPOLL the company explains. The DPD works
displayed their flexible, multi-functional with thick, sticky or putty-like materials
beverage lines and targeted 360-degree and when mixing high-viscosity products
approach with brewing technology to greater than 2 million centipoise, the
give end users added value and flexibility. blades impart a kneading action to the
The All in One monobloc filler provides batch, smoothing out its consistency and
rinsing, filling, seaming and capping with breaking up any agglomerates.
one filler that can fill as many as 3,000 to ■ Charles Ross & Son Co., 710 Old Willets
20,000 bottles or cans an hour, depending Path, Hauppauge, N.Y. 11788;
on the filling medium and system. The 800/243-7677; mixers.com.

bevindustry.com | JANUARY 2019 | Beverage Industry | 63


Supplier’s Marketplace

NEWS
United Kingdom-based Linx Printing
Technologies Inc. upgraded its 8900
series of Continuous Ink Jet (CIJ) printers
with new software that is producing 33
percent faster print speeds for one-line,
seven drop-high print at as fast as 440
meters a minute, the company says. The
combination enables higher production
output in high-speed bottling applications,
it adds.
LED illuminat ion
Dirk Berndt was elected to the Photonics21 Smart Vision Lights, a manufacturer of LED
Board of Stakeholders for the European illumination for machine vision applications,
Machine Vision Association (EMVA), introduced the DFLW-200 dark field washdown ring
Barcelona, Spain. With more than 2,500 light, the company says. Available in an anodized black
members, Photonics21 unites the leading aluminum housing, the IP68-rated, large-diameter light
features the multi-drive driver, which allows the light
photonics industries and relevant research
to work in continuous operation or OverDrive strobe
and development (R&D) stakeholders within
mode. Additionally, SafeStrobe technology applies
Europe’s economic value chain.
safe working parameters to ensure that high-current
Catch the wave LEDs are not damaged when driven beyond their
Honeywell Intelligrated, Mason, Ohio,
WaveGrip offers the WaveGrip G1 to help breweries limits. The DFLW-200 uses a microlens turning film.
highlighted a new collaboration with Fetch streamline their manufacturing processes while When combined with high-power LEDs, the microlens
Robotics, Fort Mill, S.C. The companies providing a sustainable, environmentally friendly turning film directs a beam of light at a 25-degree angle
will work together to provide distribution solution for the multi-packing of beer cans, the toward the object, resulting in a highly concentrated
centers with autonomous mobile robots to company says. The fully automatic applicator runs at and uniform field of illumination, the company says.
help them more effectively fulfill growing a top speed of 100 cans a minute and is designed to The technique gives large-diameter dark field ring
volumes of eCommerce orders. The initiative provide material and labor savings, the company says. lights an extended working distance with no loss of
enables the company to help its customers Weighing less than 4 grams for a standard six-pack light intensity or uniformity, the company says. Other
increase productivity and boost labor and using less material than comparable multi-packing features include an industry-standard 5-pin M12
efficiency by deploying the robots to safely solutions, WaveGrip is one of the lightest carriers on the connector that makes for simple wiring and a 1–10V
operate alongside workers without human market, it says. Additionally, all WaveGrip carriers are DC analog signal line that gives the user total control
guidance or fixed paths in the warehouse, 100 percent recyclable and meet current U.S. packaging over intensity in continuous operation mode.
the company says. regulations by being photodegradable. ■ Smart Vision Lights, 2359 Holton Road, Muskegon,
■ WaveGrip, 52585 Dequindre, Rochester Hills, Mich. Mich. 49445; 231/722-1199; smartvisionlights.com.
48307; 248/652-0557; wave-grip.com.
Milwaukee-based the OPC Foundation has
elected Juergen Weinhofer, vice president
of common architecture and technology at
Traceable
Milwaukee-based Rockwell Automation, to compliance
its Board of Directors. Weinhofer will help Cole-Parmer highlighted its
lead the OPC Foundation in its mission one button plug-and-play
to create standards that allow multi- Digi-Sense TraceableOne
vendor industrial internet of things (IoT) single-use USB temperature
technologies to securely and reliably work data logger with calibration.
together, the company says. Designed to ensure effective
cold-chain management,
Charles Ross & Son Co., Hauppauge, each single-use data logger is
N.Y., appointed Gregg Drames as a traceable to NIST standards
and comes with a traceable
regional sales manager. He will cover the
certificate. The compact
Mid-Atlantic region, including Delaware;
data loggers are ideal for
Maryland; Washington, D.C.; southern New
measuring temperature
Jersey; and parts of Pennsylvania. Drames
and/or humidity and
will be based in Newtown Square, Pa. remain at set parameters
Improved wearables during transport, storage or
Madison Chemical, Madison, Ind., Spartan Parts, a subsidiary of Fogg Filler Co., offers experiments, the company
unveiled a new website, MadChem.com. custom parts design and fabrication for commercial says. The pre-programmed
The site details the company’s lineup filling equipment. The parts were developed to support loggers measure typical temperature ranges and
of formulated chemicals for cleaning equipment upgrades and consumable parts in a feature alarm set-points that allow a quick check for
and sanitation within the craft brewing beverage plant. Among the range of wearable parts outliers. The data loggers auto generate PDFs when
and beverage industry. The site provides Spartan offers are hard to find stainless steel bearings; plugged into a computer and no software or driver
technical information on the company’s vent tubes featuring automated, sanitary welds inside is required to download data. Flashing red and green
products, safety data sheets, customer and out; new and improved diaphragms to prevent LEDs indicate device is recording data with interval
testimonials and more. Customers also can delamination and reduce cracking in areas of high updates every one, three, six or 10 minutes, the
search for MadBrew solutions, including stress; and lifter brushings, it says. company says.
clean-in-place (CIP) acid cleaners, CIP ■ Spartan Parts, 3455 John F. Donnelly Drive, Cole-Parmer, 625 East Bunker Court,
alkaline cleaners, lubricants and specialty Holland, Mich. 49424; 616/377-7150; spartanparts.com. Vernon Hills, Ill. 60061; 800/323-4340; coleparmer.com.
products like peroxide additives.

64 | Beverage Industry | JANUARY 2019 | bevindustry.com


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Market Insights

The direct approach


Direct-to-can TODAY, THOSE WORKING IN THE BEVERAGE MARKET MIGHT BE ASKING; WHY

printing sees more is the demand for direct printing to cans so high? They also might ask, why is it so
high right now?
opportunities
The following are key drivers of this packaging Craft brewers are producing relatively small batches
trend: of beer with frequent special runs and seasonal
■ Growth in short product runs driven by the craft variants a key part of their offering. They package their
beverage industry product in cans because they offer superior protection
■ Growth in mass packaging customization of against UV light and oxygen, the two biggest threats
mainstream products: special pack variants for to freshness. Beverage cans are lighter than bottles,
specific events or retail outlets thereby cheaper to transport and 100 percent recyclable.
■ Desire to avoid the high cost and recycling issues Because their entire surface can be decorated, they offer
associated with shrink sleeves marketers much greater retail shelf-presence to attract
■ Growth in use of fully recyclable metal packaging consumers.
generally, at the expense of plastic Large multi-national beverage companies need to
cost-effectively produce lower volumes of beverage
Beverage can decoration is beginning the familiar packaging for a variety of reasons including test
journey that many other print applications have taken. marketing, music festivals, sporting events, regional
The market demands larger and larger numbers promotions, competitions and export opportunities.
of short print runs that traditional flexo and offset Although the recent focus and demand has been beer
printing cannot fulfill at a reasonable cost, making a related, there are a growing number of other products
digital solution an enticing option. Three variables are that are packaged in cans. Besides carbonated soft
concurrently impacting this market: the increasing drinks and energy drinks, water now is often sold in
popularity of recyclable metal over non-recyclable cans as the move away from plastic packaging gains
plastic primary and secondary packaging; the craft momentum, and we are seeing wine and pre-mixed
beverage explosion; and the general trend for mass- cocktails in cans growing in popularity.
customization of packaging in traditional beverage
markets. BESPOKE OR TURNKEY?
Currently, a brewer wanting cans decorated using Given the popularity of aluminium cans, addressing
traditional analog processes will be looking at a printing solutions also is of concern for beverage
minimum order of 100,000 units before the cost of manufacturers. Tonejet’s Cyclone can printing system
printing plates and job setup is justified. A brewer is self-contained and designed for use by label printers
wanting a 10,000 can run could use pre-printed shrink or packaging converters that might previously not have
sleeves, which have to be assembled to the can by a dealt with this market, as well as by experienced can
specialist packaging converter. The same batch printed handling facilities.
digitally direct-to-can using Tonejet technology will Cans are shipped from manufacturing facilities on
save the brewer 2,000 British pounds and will avoid the pallets containing about 7,000 cans, which need to be
recycling headache created for the consumer by plastic unloaded ahead of printing, and re-loaded onto pallets
shrink sleeve labels. after printing. Customers from a printing or converting
The short-run craft beer market is exploding. In background typically will need a depalletizer, an
1980, there were fewer than 50 brewing companies in oven for curing the over-varnish that is applied, and a
the United States, and little product differentiation. By repalletizer.
2017, following a five-year surge in growth, there were Customers in the can manufacturing or filling
6,300 craft breweries in the United States representing business might only require the core Cyclone printing
23.4 percent of beer sales, providing consumers with a system.
diverse range of beer and hard cider styles, based on
data from the Brewers Association (BA), Boulder, Colo. PROCESS ADVANCEMENTS
>>

More craft brewers are packaging their


products in aluminium than in past years. The craft beer industry grew at 8 percent in 2017, while Larger can manufacturers need to print onto un-necked
(Image courtesy of Tonejet Ltd.) traditional beer sales were stagnant, according to the cans, and require a robust but flexible print result which
BA. This story is being replicated globally. More than will survive the subsequent can-necking process, in
Tonejet (tonejet.com) offers digital printing technology 19,000 independently owned brewing companies are which the can is formed under pressure to create the
that utilizes electrostatic drop-on-demand deposition in operation worldwide, most of whom have started curved neck before the lid is attached. Tonejet’s process
technology that enables high-quality print on virtually business within the past five years, and there are no results in an image layer that is less than a micron
any type of substrate at high speeds. signs of this slowing down. thick (compared with about 20 microns for UV inkjet),

66 | Beverage Industry | JANUARY 2019 | bevindustry.com


By Tonejet Ltd.

THE RIGHT FIT


Several different industries are showing a great deal
of interest in the Cyclone digital printer. Traditional
pressure-sensitive and shrink-sleeve label printers
are keen to understand the new technology and
how it fits into their business, as it typically reduces
cost for each label by a half to - two-thirds. They
see the growth in craft beer as a way to fund the
acquisition of a new technology platform that will
enable entirely new applications and markets as their
customers start to understand the potential it offers
throughout the beverage industry.
Larger beverage brands also are discussing digital
>>

Digital direct-to-can printing can offer cost savings and technology like what Tonejet offers due to its ability
sustainability benefits. (Image courtesy of Tonejet Ltd.)
to directly print onto cans in lower volumes as a
allowing Tonejet-printed cans to run through the way to communicate with consumers. For example,
necking process with the decoration untouched. Tonejet printed cans in very low quantities for
Craft beer and small- to medium-sized filling the Tomorrowland music festival sponsored by
lines on the other hand, will buy undecorated Anheuser-Busch InBev. Ten thousand cans were
blank cans, which are pre-necked. These cans are printed using 15 different designs featuring national
immediately printed before filling and present flags in runs between 15 and 1,400. The ability to
different challenges, as the external surface will digitally print directly on the cans made the project
be contaminated with necking oil and PTFE anti- possible. Traditional printing would have been
slip materials used to prevent damage in transit. prohibitively time-consuming and expensive.
Tonejet has developed a can preparation process that Digital printing also is in strong demand from
removes the contaminants and leaves the surface of entrepreneurs and start-ups, offering mobile filling and
the can in perfect condition for printing, immediately packing to the craft sector, or creating new beverage can
before the image is laid down. converting service businesses. BI

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68 | Beverage Industry | JANUARY 2019 | bevindustry.com


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70 | Beverage Industry | JANUARY 2019 | bevindustry.com


Ad Index
READER & MARKETING
Allied Electronics ..............................................5, 57 iTi Tropicals ..................................................... 19, 52 SERVICES
www.thinkallied.com www.ititropicals.com LETTERS
JESSICA JACOBSEN
Applied Food Sciences, Inc..............................17, 53 Mail: Beverage Industry
Krones .............................................................. 15, 47 155 Pfingsten Road, Suite 205
Deerfield, IL 60015
www.appliedfoods.com www.kronesusa.com E-mail: [email protected]

SINGLE COPY SALES/


Beverage Marketing Corporation .................. 71, 73 Kyowa Hakko USA .................................................29 BACK ISSUES
www.bevindustry.com/scs

www.bmcreports.com www.cognizin.com
SUBSCRIPTIONS
www.bmcbeveragecompanydatabase.com
CUSTOMER SERVICE
Lubriplate Lubricants Company ....................26-27 T: (800) 952-6643
F: (847) 763-9538
Clean Liquid Systems .....................................18, 63 E-mail: [email protected]
www.lubriplate.com
www.cleanliquidsystems.com CUSTOM MEDIA
Nightclub & Bar Convention/Trade Show ............ 61 MELANIE KUCHMA
DAK Americas ........................................................14 E-mail: [email protected]
www.NCBShow19.com Call: (610) 383-7970

www.dakamericas.com
LIST RENTAL
NVE Pharmaceuticals ...........................................21
Finlay Tea Solutions, Inc ....................................... 13 FOR POSTAL
INFORMATION:
www.nveusa.com Contact Kevin Collopy at
www.finlays.net (402) 836-6265
Toll Free: (800) 223-2194, ext. 684
[email protected]
PROMAT 2019 .......................................................45
Food Safety Summit 2019 ...................................65 FOR EMAIL
www.promatshow.com INFORMATION:
www.foodsafetysummit.com Contact Michael Contantino at
(402) 836-6266
[email protected]
Ryson International .........................................11, 48
Freightliner Trucks..........................................75, 76
PRINT & INTERNET ADVERTISING
www.ryson.com
www.freightlinertrucks.com STEVE PINTARELLI
Western US
demanddetroit.com/engines/DD8
SEW Eurodrive .................................................. 2, 49 E-mail: [email protected]
Call: (949) 600-8092

Heineken...................................................... 3, 38-39 www.seweurodrive.com BRUCE KLION


East Coast, Canada
E-mail: [email protected]
www.heineken.com
Southeast Bottling & Beverage ............................ 31 Call: (248) 786-1716

CHRISTOPHER CASEY
Hilmar Ingredients .................................................10 www.southeast-bottling.com Midwest
E-mail: [email protected]
Call: (847) 894-8761
www.hilmaringredients.com
Unique Energy Drinks ............................................12
CLASSIFIED
Hunan Huacheng Biotech, Inc .............................20 www.UniqueEnergy.com
CATHERINE WYNN
E-mail: [email protected]
www.huachengbio.com Call: (847) 405-4010
U.S. Highbush Blueberry Council ........................ 33
www.adallen-nutrition.com REPRINT
www.blueberrytech.org
JILL DEVRIES
[email protected]
Vacuum Barrier Corporation ......................... 32, 43

www.vacuumbarrier.com

BEVERAGE INDUSTRY (ISSN: Print 0148-6187 and Digital 1938-3843)


is published 12 times annually, monthly, by BNP Media II, L.L.C., 2401 Wilkens- Anderson Company ................................18
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72 | Beverage Industry | JANUARY 2019 | bevindustry.com


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EXPERIENTIAL A new kind of offering
DRINKING
To showcase its new line of handcrafted espresso
drinks, Dunkin’ teamed up with BBDO NY to create
Premium
BY TAYLOR KARG
Associate Editor
a new campaign titled Sipping is Believing. The fully inspiration
integrated campaign includes TV, radio, social Earlier this year, Bacardí

A
midst the happy hours, an
media and on-premise displays. “With our new
activity my friends and I enjoy introduced its Premium
doing is trying out different espresso lineup, we’re now offering a terrific espresso
at a great value, delivered at the speed of Dunkin’,” Collection of rums; however,
local breweries. As we attempt to
expand our beer palates, the experience said Tony Weisman, chief marketing officer for most recently, the company
and feel of the establishment also is an Dunkin’ US, in a statement. “We believe the rich unveiled the first ad campaign
important factor. and smooth taste of our new handcrafted espresso
The craft beer for the collection. Titled The
creates a powerful new choice for America’s growing
industry has been
community of espresso drinkers.”
Angel’s Share, the campaign
booming since the
early 2000s and the
was co-directed by actor and
Boulder, Colo.-based filmmaker Michael B. Jordan,
Brewers Association and uses a short-film to tell the
reported a 5 percent- Show your spirit story of family, heritage and the
by-volume increase SVEDKA Vodka launched its first
of craft brewer sales national brand campaign in more than Bacardí premium rum-aging
in 2017. As more and more beer styles
appear in the market, consumers are
five years titled Bring Your Own Spirit, process, the company says.
finding new ways to enhance their which includes TV spots, creative digital
craft-drinking experience. marketing and social media content. The
A November 2018 Nielsen Insights brand’s new message channels its original and energizing
titled “How the Taproom Phenomena brand ethos through vibrant imagery, captivating content,
Sip a Coke,
is Helping Reinvigorate U.S. Craft
Beer Sales,” states that “taprooms
and declarative language, the company says. “SVEDKA has play some golf
stood out for years with its loyal fan base for its edgy and Sports entertainment venue Topgolf announced it
and tasting rooms are providing new
and creative experiences for craft beer provocative point of view,” said Jim Sabia, chief marketing recently added The Coca-Cola Co. as an official
drinkers to engage with their favorite officer for Constellation Brands, in a statement. “We beverage partner. Topgolf guests now can enjoy
brews.” believe that the brand’s new Bring Your Own Spirit platform more than a dozen Coca-Cola products in all of
Data from Nielsen and Nielsen CGA represents the consumer of today — one that is fearlessly its 46 United States venues, as well as at Topgolf
indicates that the popularity of original, has a distinct point of view, and makes no apologies Crush events and through special partnership
experiential drinking venues is on the
for who they are or what they do. This campaign showcases activations, the company says. In addition to
rise, particularly among younger craft
drinkers, the Insights states. “In fact, the dynamic energy and sense of place that connects the Coca-Cola, Topgolf will serve Coke Zero Sugar,
within the past year, 23 percent of consumer intimately with the SVEDKA brand, creating a Diet Coke, Sprite, Fanta Orange, Barq’s Root
millennials have visited a brewpub, tangible sense of good times in the immediate future.” Beer, Minute Maid Light and, vitaminwater zero.
13 percent of millennials have visited Guests also will be able to order Gold Peak Tea,
a groceraunt to grab a meal or a drink,
Dasani, smartwater, Topo Chico and Simply juices,
and 14 percent of millennials have
visited a game-based bar,” it says. it adds. “Few brands can put a smile on a person’s
However, millennials aren’t the only face like Coca-Cola beverages can. We’re proud
demographic that desire new places to those moments of happiness will now be created at
drink, the Insights states. Data from Topgolf,” said Brian Radics, chief marketing officer
Nielsen and Nielsen CGA found that at Topgolf, in a statement.
15 percent of all U.S. consumers of
legal drinking age say they have visited
a brewpub/taproom in the past three
months, with 42 percent saying they
had visited more than they did a year Super Bowl, super artists
ago, it says. Ahead of Super Bowl weekend, Bud Light announced it is
The increasing trend of experiential hosting the first-ever Bud Light Super Bowl Music Fest from
food and drink establishments can be
Jan. 31 to Feb. 2 at Atlanta’s State Farm Arena. The three-
attributed to the moderate growth of
the craft beer industry overall, it adds. night festival will give football fans and the city of Atlanta an
As craft beer works to hold its place opportunity to enjoy the artists they love and pay homage to
in the industry, it will be interesting to the city’s history of iconic artists, the company says. Artists
see what new experiences craft brewers include Bruno Mars, Cardi B, Ludacris, Migos and Aerosmith.
will bring to the table.

74 | Beverage Industry | JANUARY 2019 | bevindustry.com


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