Sie sind auf Seite 1von 68

HEALTH & DISCOUNT

WELLNESS RETAILERS WINE


Trend gets more Channel outperforms Premiumization trend
customized and detailed overall retail food category benefits category sales

Trends, technology & products shaping the marketplace February 2019

MAKING
THE SHIFT
COTT CORPORATION
SEES BRIGHT FUTURE
WITH HOD WATER

www.bevindustry.com
The Future of Pumping, Available Now
GEA Hygienic pumps – optimized for efficiency

GEA offers a complete portfolio of standard end-suction and self-priming centrifugal pumps, as
well as rotary lobe positive displacement pumps. Each tailored to meet specific industry needs.

• 3A , EHEDG, and QHD certified


• Gentle product handling
• Easy maintenance
• Flexible configurations available

Learn what working with GEA can mean for you. Email us at sales.northamerica@gea.com,
call 844-432-2329, or visit our website at gea.com to explore our full portfolio.
G-B-BNP-2019
FOR THE ULTIMATE
IN HIGH-PERFORMANCE LUBRICANTS
MADE FOR THE BEVERAGE INDUSTRY

LOOK TO LUBRIPLATE¨
100% SYNTHETIC
H1 REGISTERED LUBRICANTS
Engineered from the ground up to provide unsurpassed endurance in beverage processing equipment.
These high-performance, 100% synthetic lubricants provide extended lube intervals, multiple application
capability and lubricant inventory consolidation, all while maintaining strict H1 safety requirements.
Products Include...

SFGO ULTRA SERIES FLUID LUBRRICANTS


• High-Performance, 100% Synthetic, NSF H1 Registered Fluid Lubricants.
• Extremely Versatile, Recommended for Air Compressors, Hydraulic
Systems, Can Seaming Equipment, Bearings, Gearboxes and Chains.
• Available in 13 ISO viscosity grades.

SYNXTREME FG SERIES GREASES


• 100% Synthetic, Calcium Sulfonate Complex Type Greases.
• Super Multi-Purpose, Ideal for a Variety of Applications.
• Provides Excellent Anti-Wear and Extreme Pressure Protection.
• High Temperature Stability - Effective to 450˚F.

PGO-FGL SERIES GEAR LUBRICANTS


• Ultra High-Performance, Advanced, Polyalkylene Glycol (PAG)-Based
Gear Lubricants.
• The Ultimate Gear Lubricants for Demanding Applications.

Backed By:
Lubriplate ¨

ES P
Complimentary Extra Services Package
Plant Surveys / Tech Support / Training
Newark, NJ 07105 / Toledo, OH 43605 / 800-733-4755 Color Coded Lube Charts & Machine Tags
LubeXpert@lubriplate.com / www.lubriplate.com Lubrication Software / Follow-Up Oil Analysis
February 2019

20 40

12 24
Features
6 Beverage Beat 30 Packaging
Shrink and stretch labels continue to penetrate the beverage market.
8 Industry Issues
34 Beverage R&D
12 Category Focus Consumer confidence in cognitive health and energy ingredients drives usage.
Premiumization trends impact wine market.
40 Ingredient Spotlight
16 New Products Domestic and exotic fruit formulations provide health and flavor benefits.

18 Special Report 42 Distribution


Health-and-wellness trend becomes more complex. Green alternatives find their niche in beverage delivery.

20 Cover Story 44 Warehouse


Cott Corporation sees bright future with home-office-delivery category. Storage systems and ASRS address space issues in beverage plants.

24 Up Close With… 50 Operations


Me & the Bees Lemonade • BevOps Fleet Summit 2019 Pre-Show Profiles
• Installing effective maintenance programs
26 Channel Strategies
Limited-assortment and dollar stores performing well. 58 Supplier’s Marketplace
28 Between Drinks 64 The Last Drop

4 | Beverage Industry | FEBRUARY 2019 | bevindustry.com Cover image courtesy of Cott Corporation
Give consumers the healthier beverages
they want and the great taste they
demand with premium brewed tea from
Amelia Bay. We start with the finest quality
tea leaf, brewing it with our advanced
technology and unparalleled R&D flavor
expertise to help you create pure, tasty,
and convenient better-for-you beverages.

AmeliaBay.com | 770-772-6360
¨

Beverage Beat VOLUME 110, NUMBER 2

For subscription information or service,


please contact Customer Service at:
TEL.: 800-952-6643 or
FAX: 847-763-9538 or
EMAIL: bI@omeda.com
www.bevindustry.com

Calculating the true costs


PUBLISHER
Western US
STEVE PINTARELLI
pintarellis@bnpmedia.com
949-600-8092

PRECEDING LAST YEAR’S SUPER BOWL, KRAFT HEINZ MADE EDITORIAL


Editor
headlines when the food and beverage manufacturer said
JESSICA JACOBSEN
it planned to give employees the day off after the big event. jacobsenj@bnpmedia.com
Managing Editor
This news came as mainstream media outlets calculated the BARBARA HARFMANN
costs on employers due to truant workers. The impact of this harfmannb@bnpmedia.com

Associate Editor
much-watched game on the Monday workforce continued once TAYLOR KARG
again this year; however, worker presence and productivity kargt@bnpmedia.com

following major events are not the only thing impacting the ART
Art Director
U.S. economy as of late. DANA KNAPP
Also placing a drag on the market occurs when consumers are faced with out-of-stock knappd@bnpmedia.com

products during their brick-and-mortar shopping experience. According to Information CONTRIBUTORS


Resources Inc. (IRI), out-of-stock products cost U.S. retailers approximately $47.4 billion
JEFF CIOLETTI
each year. Anecdotally, I can say that when you are shopping with a toddler who would
JOHN PETER KOSS
rather be making a pink pumpkin out of Play-Doh instead of at the grocery store, being
ADVERTISING
faced with out-of-stock necessities can be quite deflating and seeking a comparable East Coast, Canada
alternative is not always a luxury when factoring in nap times or other toddler triggers. BRUCE KLION
Although not as public as a toddler meltdown, retailers also are dealing with their own klionb@bnpmedia.com
248-786-1716
disappointment when losing a potential sale because of out-of-stocks.
Midwest
Noting the complexities of the supply chain, inventory costs and in-store executive
CHRISTOPHER CASEY
challenges, IRI highlights that retailers remain challenged when attempting to forecast, caseyc@bnpmedia.com
order and merchandise consumer packaged goods. However, in a recent Point of View titled 847-894-8761

“On-Shelf Availability: Fueling Profitability, Customer Loyalty and Topline Sales Growth,” Pacific Northwest

the market research firm details how technology can serve as a solution to the out-of-stock WAYNE WIGGINS JR.
w.wigginsjr@mindspring.com
challenges of today’s retailers.
Inside Sales
As an alternative to manual shelf audits, the firm developed the IRI On-Shelf MARIANNE MAJERUS
Availability Optimizer, which is powered by artificial intelligence and machine-learning majerusm@bnpmedia.com
248-786-1262
technology, it says.
Senior Classified Sales Manager
“Retailers that can capitalize on the vast technological and data science advances to drive
CATHERINE WYNN
sales growth will be winners in a competitive marketplace where every dollar counts,” said wynnc@bnpmedia.com
Prakash Tilwani, executive vice president of supply chain and media solutions at IRI, in a 847-405-4010

statement. “The On-Shelf Availability Optimizer solution ensures that at the critical point of Advertising/Production Manager

purchase, retailers are in position to provide excellent customer service, build loyalty and BRIAN BIDDLE
biddleb@bnpmedia.com
capture value.” Corporate Reprint Manager
By integrating data sets that track products across the supply chain and in stores, the JILL DEVRIES
On-Shelf Availability Optimizer creates near-real-time insights and then alerts in-store devriesj@bnpmedia.com

employees in near-real time, IRI says. AUDIENCE DEVELOPMENT


The market research firm even conducted a case with a major grocery store chain, which Audience Marketing Project Manager

found that the IRI On-Shelf Availability Optimizer solution alerted in-store employees to an SHERRI GRONLI
Toll Free: 800-952-6643
average of 6,000 inventory defects a day across 700-plus stores, it states. The retailer was 847-559-7399
able to recapture an average of $68 in sales with each alert, which amounted to tens of Integrated Media Coordinator
millions of dollars in just a few months, IRI adds. CATHERINE NEAL
As more consumers migrate to eCommerce grocery shopping, tools that can ensure
Audience Audit/Postal Specialist
stocked shelves could become more valuable as the consumer is not there to easily
WAFAA S. KASHAT
adjust a purchase pattern.
LIST RENTAL
POSTAL CONTACT:
Kevin Collopy at 402-836-6265
Toll Free: 800-223-2194 ext. 684

JESSICA JACOBSEN, Editor kevin.collopy@infogroup.com

EMAIL CONTACT:
Michael Costantino at 402-836-6266

Visit us online
michael.costantino@infogroup.com

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: devriesj@bnpmedia.com. IN BUSINESS WITH Creative MICHAEL T. POWELL
SUPERIOR INFORMATION Events SCOTT WOLTERS
Clear Seas Research BETH A. SUROWIEC

6 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


Can Seamer Lubricants

Brands YOU Count On,


People You TRUST.
Lubriplate® SSO FG-100, SSO FG-150 and SFGO
Ultra-100 Can Seamer Lubricants are designed
to meet the needs of your can seaming/closing
equipment.

• 100% Synthetic, High-Performance Fluid


Lubricants.

• NSF H-1 Registered and ISO 21469 Certified,


Food Machinery Grade.

• Recommended and approved for can


closing/seaming equipment with oil
recirculating systems.

And you can find Lubriplate Can Seamer


Lubricants at your local Motion Industries
location. Our local sales and service specialists
are experts in providing application and
technical solutions, with the choices and
expertise you need to stay up and running.

Learn More
http://esp.to/w5cEmA

Brands you count on, people you trust…that’s Lubriplate and Motion Industries.

Call. 800-526-9328
Click. MotionIndustries.com
Visit. Over 530 Locations

©2018 Motion Industries, Inc.


Caribou Coffee, Minneapolis, announced that John Butcher
has been appointed president and chief executive
Industry Issues officer. Butcher has served as president of Caribou
Coffee since joining the company in June of 2017.

PepsiCo Inc., Purchase, N.Y., announced that its


Study finds legalization of recreational Board of Directors has unanimously elected Ramon

marijuana not effecting spirits sales Laguarta as the company’s Chairman of the Board,
succeeding Indra K. Nooyi, who announced in August

I
n spite of consumer interest in recreational capita alcohol sales in beer, wine and spirits as 2018 her intention to step down as PepsiCo chief
marijuana and the fact that several states have follows: executive officer, effective Oct. 3, 2018, and remain
legalized its use, the Washington, D.C.-based ■ In the case of per capital beer sales, sales in the Chairman until early 2019 to ensure a smooth
Distilled Spirits Council reports that distilled three states declined between -2.3 to -3.6 percent, and seamless transition. The appointment became
spirits sales have not been negatively impacted. but this is consistent with the national trend in effective when Chairman Nooyi retired from the
The new in-depth study examined state-level beer sales and is not isolated to just those states company Feb 1.
alcohol tax receipts and per capita alcohol sales that have legalized marijuana sales, Orzgo said.
in Colorado, Washington state and Oregon for ■ In the three states, per capita wine sales were Hoist, Cincinnati, announced its self-titled line of
the two years prior to recreational marijuana mixed. Colorado was up 3.2 percent; Washington super hydration beverages now will be sold at select
legalization and up to three to four years post- state was down -3.1 percent; and Oregon was up Kroger locations in the Cincinnati and Atlanta areas.
legalization. 0.7 percent. Hoist will appear on shelves of Kroger’s natural
“Simply put, the data shows there has been ■ Per capita total beverage alcohol sales (spirits, beverage segment at all 118 Cincinnati area stores
no impact on spirits sales from recreational wine and beer) were roughly flat, also consistent and 195 Atlanta area stores, the company says.
marijuana legalization,” said Distilled Spirits with the national trend. Colorado was up The Cincinnati division includes Dayton, northern
Council Chief Economist David Ozgo in a 1.7 percent; Washington state was down Kentucky and parts of Indiana, and the Atlanta
statement, noting that examining tax data -0.2 percent; and Oregon was down -0.5 percent. division includes parts of South Carolina and
and actual shipments provides the most Although the Distilled Spirits Council has taken Alabama, it adds.
accurate insight into what is happening in the no position on whether states should legalize
marketplace. recreational use of marijuana, it has established Chicago-based Petal Sparkling Botanicals announced it
“We now have four years of retail recreational marijuana policy principles that it urges state has signed a national contract with World Finer Foods
marijuana sales history in Colorado and officials to consider if they pursue legalization of (WFF) Inc., Bloomfield, N.J., to help grow the brand.
Washington state, and three years in Oregon, and the product. Alongside Petal’s other partner, BeyondBrands, WFF will
each of these markets remain robust for spirits “If states contemplate marijuana legalization, help drive sales and marketing, allowing the brand to
sales,” Ozgo added. He also noted that overall we urge lawmakers to ensure they fully consider rollout more flavors and scale itself nationally, it says.
alcohol sales mirror national trends and there is comparable taxes and regulation, strong road
no pattern of declining spirits sales in any of the safety measures and social responsibility Stony Creek Brewery, Brandford, Conn., named Catherine
markets analyzed. standards when they examine the issue,” said McGuinness to lead its quality control/quality assurance
“We did this study because there is a lot of Distilled Spirits Council President and CEO Chris department. McGuinness will be responsible for
misinformation circulating about the impact of Swonger in a statement. maintaining and ensuring that the breweries award-
recreational marijuana legalization on distilled In addition to Colorado, Oregon, Washington winning lineup of beers are produced to the highest
spirits and the wider alcohol market,” he added. state and the District of Columbia, seven states standards and consistently enjoyed by guests, the
The analysis shows that in the three states, have legalized sales of recreational marijuana: company says.
per capita spirits sales increased between Alaska, California, Maine, Massachusetts,
3.6 to 7.6 percent since recreational marijuana Michigan, Nevada, and Vermont. In 2019, Miami and Dallas-based Southern Glazer’s Wine &
legalization went into effect. Colorado was up several states are considering legalizing Spirits announced changes in its East Region
7.6 percent; Washington state was up 5.4 percent; and recreational marijuana, including Arizona, executive team, effective immediately. Walter Cowell,
Oregon was up 3.6 percent, according to study data. Connecticut, Illinois, Missouri, Montana, New previous vice president of commercial operations
Additionally, no evidence was found that legal Hampshire, New Jersey, New York, Rhode Island for Florida, has been promoted to executive vice
recreational marijuana has impacted total per and Pennsylvania. BI president and general manager of the Mid-Atlantic
region, responsible for the Maryland; Washington,
Columbia Distributing to D.C.; and Delaware markets. Greg Astle, previously
vice president of trade development for Southern
acquire Graybeal Distributing Glazer’s transatlantic division, will assume Cowell’s
position in Florida.

P
ortland, Ore.-based Columbia Distributing Columbia gained through last year’s acquisition of
announced it will purchase the majority General Distributors Inc. The Graybeal acquisition Pine Ridge Vineyards, Napa Valley, Calif. announced Gustavo
of the assets of Graybeal Distributing, mirrors the strategy of other distributors in recent Avi–a as the winery’s new viticulture director. A 16-year
Pendleton, Ore. Graybeal represents a portfolio years, Columbia’s president and chief executive veteran of the winery, Aviña works across the company’s
of more than 190 international, national and local officer (CEO) Chris Steffanci says. “This will allow five appellations: Stags Leap District, Howell Mountain,
beer, energy and water suppliers that account for us to expand numerous brands where we see Oakville, Rutherford and Carneros.
more than 500 brands, it says. strong potential for growth while delivering on our
Employees, brands and warehouses of Eastern brand promise. … We are excited to start a great Fort Lauderdale, Fla.-based Bloomers Frosé & More
Oregon’s largest beverage distribution company partnership with our new Eastern Oregon family.” announced its new multi-state deal with Republic
will continue normal operations under the new Graybeal CEO Maryl Featherstone added: National Distributing Co., Grand Prairie, Texas. The brand
ownership when the transaction closes on or “Graybeal Distributing has been incredibly will begin its multi-state launch in Georgia, as well
around Feb. 28, it said. fortunate to build a distributorship that’s made as release its new low-calorie, low carb version to
Founded in 1955 by the father and son team of such a significant impact on so many lives. A very consumers, it says.
Finley and Jay Graybeal, the Graybeal family has sincere thank you to everyone who’s touched the
grown the business to more than 2,400 beverage company over the last 64 years ... I have no doubt The Alkaline Water Co. Inc. announced that its wholly
SKUs distributed to the eastern counties of the business we’ve built is in good hands; it will owned subsidiary — A88 Infused Beverage Division, Inc.
Morrow, Umatilla, Union, Baker and Wallowa. continue to grow, and most importantly, give — entered into a brand development agreement with
The acquisition builds on the eastward territory back to our community.” BI ArchPoint Group, San Antonio, Texas, to design the cans
and bottles for its new hemp-infused sparkling and
still water products, the company says.
8 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
POWER
We stock enough power to
brew a 12 oz. cup of coffee
for the entire population
of New Orleans.

Put that in your mug and drink it.

© Allied Electronics & Automation, 2019 Get your A&C fill at alliedelec.com 1.800.433.5700
Industry Issues

Cuvaison Estate Wines teams up with


importer Frederick Wildman & Sons
N
apa Valley, Calif.-based Cuvaison As part of the strategic sales partnership,
Estate Wines, which includes the Cuvaison Estate Wines will realign its current
Cuvaison winery in Los Carneros, and distributor network with Wildman’s national
Brandlin Vineyard on Mount Veeder, reports network of distributors, which includes
that it has entered into a sales partnership with Southern Glazer ’s Wine & Spirits in more than
New York-based Frederick Wildman & Sons. 30 states. Cuvaison Estate Wines Vice President
Effective Jan. 1, Frederick Wildman will of Sales Steve Richards will continue to oversee
provide sales services for the Cuvaison Estate the company’s international sales, while
Wines portfolio throughout the United States, working closely with Frederick Wildman’s team
the companies said. Founded in 1934, Frederick to expand Cuvaison Estate Wines’ reach in the
Wildman is recognized as one of North America’s North American wholesale market.
pre-eminent importers, with a portfolio that “We are proud to partner with Cuvaison
includes Gruppo Italiano Vini, Champagne Pol Estate Wines,” said Wildman President and
Roger, Famille Hugel, Domaine Olivier Leflaive, Chief Operating Officer Marc Hirten. “Not
Jean-Jacques Vincent/Château Fuissé and only do they have a rich and storied history,
Domaine Pascal Jolivet. but Cuvaison’s focus on estate-grown,
“We are excited to be working with Frederick vineyard-driven wines helped to shape the
Wildman and Sons, and honored to be a part modern era of California winemaking. In
of their renowned portfolio of wines,” said addition, Brandlin Vineyard has long been a
Cuvaison Estate Wines President and Chief leader on Mount Veeder, and is recognized for
Executive Officer Dan Zepponi, in a statement. making exceptional mountain-grown wines. As
“… As Cuvaison celebrates its 50th anniversary a company that is dedicated to working with
throughout 2019, this partnership will help to the world’s finest wineries, we are thrilled to
ensure that our next 50 years are as successful as welcome both Cuvaison and Brandlin to our
our first 50.” portfolio.” BI

Clean Liquid Systems LLC THE


7422 Kearney Hill Ln. BEVERAGE OPERATIONS
Spring, TX 77389 Ph:713-253-0100 ADVISOR
dpalermo@cleanliquidsystems.com
don@cleanliquidsystems.com FOCUSED ON:
» Setting Performance Standards
» Maximizing Asset Utilization
• High Purity liquid filters & RO membranes » Enhancing Productivity
» Motivating Personnel
• PRFE media and PFA hardware
• Carbon blocks for taste & chemical removal CONSIDER:
» Comprehensive Conditions Analyses
• Pleated & meltblown cartridge » Establishing Operating Benchmarks
• High capacity bags and housings » Determining Personnel Competency Levels
• Sanitary Stainless Steel housings BASIC TOOLS:
• Stainless mesh filters » Critical Time Analysis (CTA)™
» Constant Change Syndrome (CCS)™
We cross most major brands. BOTTOM LINE:
Quality products at competitive prices. » Operating Problem Solutions
» Productivity Improvement
» Increase Asset Utilization

CONTACT:
John Peter Koss
19640 Cypress Circle | Lakes on the Green
Miami, FL 33018, USA
305 829 3631 | fax 305 829 2484
oleboss@aol.com
10 | Beverage Industry | FEBRUARY 2019 | bevindustry.com
Constellation Brands
releases Q3 results
V
ictor, N.Y.-based Constellation increase of 34 percent and 77 percent,
Brands released its third respectively, it said.
quarter fiscal year 2019 Constellation reports that its fiscal
results. Excluding per share data, the 2019 operating cash flow target is
company reported third-quarter net approximately $2.45 billion and its free
sales of $1.9 billion, a 9 percent change cash flow projection is $1.2-$1.3 billion.
over the prior-year period. “The results delivered by our beer
Driven by sales of its Modelo and business mark the highlight of our
Corona brand families, Constellation third quarter performance. The Modelo
reported that its beer division had and Corona brand families continue to
net sales of $1.2 billion, a 16 percent be on fire, fueled by strong velocities,
increase over fiscal year 2017, it said. excellent distribution gains and
These results within the company’s highly incremental innovation,” said
beer business for the third quarter Rob Sands, chief executive officer of
were the most significant share gains Constellation Brands, in a statement.
in the U.S. beer industry, it stated. “Our leadership in the high-end U.S.
In wine and spirits, the company beer industry positioned us to be the
reported net sales of $762 million most significant growth contributor at
for the three months ending retail during the quarter.”
Nov. 30, 2018, a 0.4 percent increase The company also completed an
over the $759 million reported in the additional $4 billion investment in
comparable prior-year period. Canopy Growth Corp., and plans to
The company also generated return $4.5 billion to shareholders
$2 billion of operating cash flow in dividends and share repurchases
and $1.4 billion of free cash flow, an through fiscal year 2022, it says. BI

Kentucky Eagle set to distribute


Kona Gold beverages

K
ona Gold Solutions Inc., being a total beverage distributor
Melbourne, Fla., has entered within the past few years, it adds. Its
into a distribution agreement portfolio consists of more than 400
with Kentucky Eagle Inc., Lexington, brands of domestic, craft and import
Ky., the largest distribution deal to beers, spirits, wines, ciders, specialty
date, the companies say. Kentucky beverages, mixers, energy drinks,
Eagle will distribute the company’s waters, teas and food.
Kona Gold Hemp Energy Drinks and “I am excited to announce that
HighDrate CBD Energy Waters within Kentucky Eagle has joined our network
the great state of Kentucky. of distribution partners,” said Chris
Distributing products within Selinger, vice president of sales for
Central Kentucky for 71 years, Kona Gold, in a statement. “Kentucky
Kentucky Eagle operates out of a Eagle has an impeccable reputation
new 190,000-square-foot facility in their market and are the premier
that is the first Anheuser-Busch distributor in Lexington, Ky. I look
LEED Certified distributor in the forward to working closely with the
nation, it says. The team consists of Kentucky Eagle team as we expand
130 vehicles that service more than our Kona Gold line of products into the
1,500 accounts in 37 counties, with
sales of 4.9 million cases a year on
its way from distributing beer to
great state of Kentucky.”
A rollout for February or March is
planned. BI 12oz Sleek
Carbonated Sodas
IN THE NEWS ... Functional Beverages
Mary Ewing-Mulligan, president of responsible for introducing WSET Sparkling Waters
International Wine Center, received the programs to the United States in
Lifetime Achievement Award at the 1994 and has spent the past
2019 Wine & Spirit Education Trust
(WSET) Awards and Graduation
25 years promoting WSET
expansion across America, the
copacking@nveusa.com
Ceremony on Jan. 21. Mulligan is association says. (973) 601-8484
bevindustry.com | FEBRUARY 2019 | Beverage Industry | 11
Category Focus

Maintaining
a diverse palate
Premiumization PREVIOUSLY, WINE CONSUMPTION WAS MORE LIKELY TO BE ASSOCIATED
with a wealthy and lavish lifestyle. However, as more wine companies are producing
trends impact
premium, yet affordable brands, more consumers are embracing the grape and
wine market considering themselves “wine connoisseurs.” New varietals, millennial-forward
trends and innovative packaging designs are helping shape today’s changing wine
market, experts state.
“Consumers are increasingly purchasing higher increase in sales, notes Nathan Greene, consulting
priced wines and other alcoholic beverages, which analyst at New York-based Beverage Marketing
has contributed to revenue growth for wineries, Corporation (BMC). “Flavor is driving growth,” he says.
wholesalers and retail establishments,” says Chris “Prosecco and Rosé are the strongest growth varietals.”
Lombardo, lead industry research analyst at Los A January 2018 Nielsen Insights titled “Heard it
Angeles-based IBISWorld. Through the Grapevine: Wine Trends to Watch Out for
“Growing per capita disposable income and in 2018” touts the impact Rosé has had on the category.
low unemployment have also increased consumer “In the last several years, Rosé wine has exploded in
purchasing power,” he adds. popularity among wine drinkers,” it says.
As a whole, the wine category has performed “Interestingly, Rosé buyers are expanding total
particularly well, experts say. “Total U.S. dollar sales of wine sales, as consumers are adding Rosé to their
wine have grown by an estimated 15 percent from 2013- carts as an addition to other wine varieties they also
18, and [were] projected to reach $62 billion [in 2018],” purchase,” it continues. “For example, Rosé shoppers
Chicago-based Mintel’s November 2018 “Wine – US” are increasingly adding more white wines, such as
report states. “The rate of growth has slowed since the Chardonnay and White Zinfandel, to their baskets
4.2 percent gain in 2015, and appears to be settling in to a compared to a year ago. This indicates that Rosé is
more moderate 1-2 percent annual growth through 2023. a popular middle ground for consumers who prefer
“Wine has outpaced the growth of alcohol sales sweet or dry white wines.”
>>

Different
ent wine varietals aare driving in total, but has maintained a steady share of the The same sentiments could be said for Prosecco, as
growth for the category, specifically
Rosé, as it appeals to sweet and/or dry
market, while spirits gain in the wake of beer it accounts for almost 20 percent of the total sparkling
wine drinkers, experts note. (Image declines,” it continues. wine category, the Insights adds.
courtesy of Charles Smith Wines) Data from Chicago-based Information Resources Inc. Chicago-based Euromonitor International highlights
(IRI) also suggests how red wine blends also are contributing to the
Top table wines moderate growth,
showing a 2.3 and
category’s growth. “Wine composed of blends of red
varietals has for the past decade provided an accessible
(Individual brands) 7.3 percent increase entry point for new wine consumers,” it states in its
in table wines June 2018 report titled “Wine in the US.”
DOLLAR % CHANGE VS. CASE SALES % CHANGE VS. and Champagne/ “Brands such as Apothic and Ménage à Trois have
SALES PRIOR YEAR PRIOR YEAR sparkling wines, been the most noteworthy benefactors of this trend and
Barefoot $666,072,031 -0.2 10,017,411 -0.6 respectively, in total consistently witnessed double-digit volume growth
Sutter Home $385,417,717 3.9 5,779,096 2.7 U.S. multi-outlets over the review period,” it adds.
and convenience The market research firm also expects Chardonnay
Woodbridge by $347,245,684 0.3 5,313,405 0.8 stores for the 52 blends to enjoy a promising future.
Robert Mondavi
Franzia Box $341,739,600 1.6 12,391,200 1.4 weeks ending Similarly, IBISWorld’s Lombardo recognizes the
Dec. 2, 2018. The popularity of certain varietals. “While there have
Yellow Tail $269,115,369 -0.2 4,069,559 0.6
data set also marks been certain wines that have briefly captured public
Black Box Wines $232,281,502 13.7 3,892,109 13.5 total table wine sales attention over the past five years, the classics still
Kendall Jackson $199,551,495 4.0 1,387,390 5.0 at $10.5 billion and largely dominate the market,” he says.
Vintners Reserve
total Champagne/ “These include Cabernet Sauvignon, Chardonnay
Apothic $194,064,496 1.5 1,665,034 -0.2 sparkling wine sales and Pinot Grigio,” he continues. “Additionally,
Josh Cellars $184,226,655 34.4 1,210,098 32.9 at $1.1 billion for that imported varieties have historically been popular in
Chateau same timeframe. the United States, and this trend holds true today, with
$183,458,770 3.0 1,563,347 3.8
Ste. Michelle The type of wine consumers of all age demographics seeking out new
Total sales* $10,470,776,144 2.3 127,568,224 0.2 that consumers are international varieties.”
*Includes brands not listed. drinking can help Additionally, strong value propositions can be credited
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, mass merchandisers, gas and explain the steady to the category’s stable growth, BMC’s Greene says.
convenience stores, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 2, 2018. year-over-year “Consumers are evaluating the value proposition of

12 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


BY TAYLOR KARG

Top Champagne/sparkling wines


(Individual brands)

DOLLAR % CHANGE VS.


CASE SALES
% CHANGE VS.
LIQUID
NITROGEN
SALES PRIOR YEAR PRIOR YEAR
La Marca $112,668,215 23.6 636,292 18.8
Korbel $104,841,278 -1.0 728,141 -1.7
Cooks $94,371,509 2.4 1,117,432 -1.5

DOSING
Barefoot Bubbly $91,682,737 3.1 831,048 2.2
Andre $84,265,396 2.3 1,161,458 -2.9
Veuve Clicquot $48,768,820 6.2 80,129 4.1
Ponsardin
Cupcake $42,849,135 4.3 318,975 2.5
Ruffino $38,813,430 23.6 253,973 20.4
Stella Rosa $36,101,722 27.1 260,452 25.0
regardless of your package
Chandon $35,533,505 -5.9 170,715 -5.8 or closure preference
Total sales* $1,142,949,177 7.3 8,666,885 4.1
*Includes brands not listed.
Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, mass merchandisers, gas and
convenience stores, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 2, 2018.

products leading to trading up when beverages in general,” he says.


applicable and trading down if a super- IBISWord’s report highlights how
premium product does not deliver,” he millennials, in particular, are more
says. willing to expand their palates toward
Furthermore, the overall health-and- different styles of wine, moving away SINCE 1958
wellness trend plays a noteworthy role from the standard light beers.
in the performance of the wine category, “Millennials represent an extremely
experts note. “Many consumers are curious group of consumers,”
seeking products with lower calories Euromonitor’s report explains. “To the
and/or stronger health connections to benefit of foreign producers, they seek
fit within a lifestyle aimed at achieving out products from new locations and
‘health and wellness,’” Greene says. hold little preference for domestic wine.”
IBISWorld also highlights the “healthy BMC’s Greene also notes the changing
halo” draw of wine consumption. demographics of the typical wine
“Over the past five years, consumer consumer. “In general, older consumers
preferences have shifted away from — early millennials, Gen Xers and baby
premium beer brands toward wine and boomers — make up the majority of
spirits of all price ranges, contributing the categories consumption,” he says.
to the increased volume of wine sales,” “However, recent innovations and trends
it says its December 2018 report titled that are currently driving the category
“Wineries in the US.” are actively opening up the market to
“One factor driving this trend is younger consumers, a trend that we
consumer health concerns,” it continues. expect to continue in future years.”
“Medical studies released during the Minimize dissolved oxygen
past decade have shown that moderate A CAN-DO APPROACH
consumption of red wine can benefit In the ever-so-crowded wine
Extend shelf life
overall heart health.” marketplace, new and innovative Purge O2 from empty bottles
packaging designs can be a
THE MILLENNIAL MOVEMENT differentiating factor. Canned wine
Purge O2 from headspace
As with seemingly most alcohol recently made its appearance in the Pressurize light-weight aluminum cans
categories, millennials are a force market and is a key driver of the
to be reckoned with. “Historically, category, experts note.
baby boomers represented the largest “Canned wine has seen a growth in
consumer segment for wineries and production and adoption in recent years,
wine bars; however, in the past five or 10 representing one-in-10 launches tracked
years, millennials have captured the spot in 2018,” Mintel’s report says. “Canned
4 Barten Lane, Woburn, MA 01801
for most wine consumed,” IBISWorld’s options have done well to democratize
T 781-933-3570
Lombardo explains. the category, making products more F 781-932-9428
“The reason is largely two-fold: casual and portable, finding particular sales@vacuumbarrier.com
smaller, craft wineries have popped appeal among younger consumers.”
vacuumbarrier.com
up in recent years, and millennials are Canned wine’s growing presence in
generally drawn to craft-style alcoholic the industry is undeniable, IBISWorld’s
continued on page 14

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 13


Category Focus
continued from page 13
Lombardo says. Current estimates have annual canned based Sterling Vineyards, a division of Treasury Wine
wine sales around the $40 to $50 million mark, he adds. Estates, launched a trio of wines in 375-ml single-serve
Introducing canned wine has brought about more aluminum bottles. Available in Chardonnay, Cabernet
opportunities for consumer consumption. “Single serve Sauvignon and Rosé, the lineup is designed to improve
makes consumption more accessible as consumers convenience for consumers, the company says.
can avoid wasting a 750-ml bottle if they don’t plan to The 375-ml category is showing double-digit growth,
drink multiple servings in a session,” BMC’s Greene with an increase of 54 percent in dollar sales and
explains. “Additionally, single serve allows wine to 35 percent in volume year-over-year, according to
more compete directly with malt products including data from IRI at the time of the announcement.
traditional beer and [flavored malt beverages] FMBs.” Although innovative packaging offers new
Cans provide a multitude of benefits, all the while possibilities for brands, the category is experiencing
further making the category more accessible to new some challenges. “Fragmentation of the market remains
consumers, allowing for easy transport and consumption an issue that is further exacerbated by new growing
in locations where glass is not ideal, he adds. entrants, making it difficult to attract and retain
For example, Tualatin, Ore.-based Union Wine consumers, especially in a market where millennials
Co. offers five varietals of its wine in cans. In the 12 gravitate to [brand] switching,” BMC’s Greene says.
months from July 2017 to July 2018, the “Cyclical nature of the market is likely to continue, in
brand saw a 52 percent increase in sales, that many of the leading growth brands [in the past] five
said Ryan Harms, founder and owner, in or so years are now flat or declining, which may very
Beverage Industry’s July 2018 issue. well happen to today’s growth leaders.”
“We attribute this success to the As the wine connoisseur evolves, consumers can
portability, recyclability and cost-efficiency expect the market to become even more accessible, with
of putting wine in cans as well as the a wider range of flavors and styles, and a new field of
explosive growth of the canned wine leading brands, most from existing leading suppliers and
category,” he said. maybe even from new disruptive players, Greene says.
>>

Canned wine provides a multitude of benefits including helping the


Another alternative to the traditional “The rate of innovation for all aspects of the industry
category be more accessible to new consumers, and allowing for easy
transport and consumption in locations where glass is not ideal, BMC’s wine bottle making headway is aluminum including products, packaging, distribution and styles
Nathan Greene says. (Image courtesy of Union Wine Co.) bottles. In January, Calistoga, Calif.- will accelerate in the coming years,” Greene says. BI

14 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


QUALITY GUARDS.

New natural
beverage
protection

Beverage manufacturers tailor beverages to meet their customers


lifestyle – at LANXESS we tailor the corresponding beverage
protection. Nagardo™ natural guardian secures and prolongs the
shelf life of your beverage. Safety enabled by nature.
www.nagardo.com
TERRA WATER
EB Beverage, Las Vegas
Telephone: 808/779-3504
Internet: ecoforlifeus.com
Distribution: National

VICTORIEUX CHAMPAGNE
Victorieux LLC, Portland, Maine HYDRATE
Telephone: 207/808-2049 THE PLANET
Internet: vchampagne.com EB Beverage launched Terra Water, a bottled
Distribution: Select markets water where the bottle is 100 percent
biodegradable and compostable, the
company says. The bottle and cap are
FRENCH INDULGENCE plant based and the labels are made from
Victorieux LLC introduced its self-titled Champagne vegetable oil, it adds. The 500-ml bottles
brand. Victorieux Champagne is grown in the will biodegrade at 60 degrees and burn
terroir of the Côte de Sezanne, France, from without releasing pollutants into the air.
a certified, sustainable viticulture grower and Terra Water is available nationwide for a
producer family, the company says. Available in suggested retail price of $1.99 for a bottle.
select markets, Victorieux features a 12 percent
alcohol-by-volume content and has a suggested
retail price of $49.99 for a 750-ml glass bottle.

GIVE YOUR KIDS A HINT


hint Inc. launched its new line of products: hint water
for kids. Available in four fruit flavors — Watermelon,
HINT WATER FOR KIDS Cherry, Blackberry and Apple — the new line is
hint Inc., San Francisco packaged in 200-ml Tetra Pak cartons. Hint waters
Telephone: 415/513-4050 are non-GMO certified and WHOLE30 approved. They
Internet: drinkhint.com are vegan, and contain no MSG, nuts, soy or gluten.
Distribution: National Like all hint waters, the kids’ version is free from
juice, sugar, diet sweeteners, colors, calories and
preservatives, the company says. Hint water for kids
is available via the company’s website, and soon at
Costco and specialty retailers nationwide, it adds.

GÂC HYDRATE PASSIONFRUIT SPARKLING WATER


GacLife LLC, Santa Monica, Calif.
Telephone: 719/581-9189
Internet: gaclife.com
Distribution: National and online
Ingredients: Carbonated water, organic 100 percent
passionfruit juice, organic 100 percent gac fruit and
organic 100 percent monk fruit juice.

SPARKLING PASSION
GacLife LLC released its newest beverage line:
Gâc Hydrate Sparkling Water in Passionfruit.
The sparkling water is infused with gâc fruit, WESTERN SON VODKA CANNED COCKTAILS
which delivers phytonutrients, including highly Western Son Vodka, Pilot Point, Texas
concentrated and bioavailable carotenoids Telephone: 940/324-0008
that provide antioxidant content, it adds. Internet: westernsonvodka.com
Gâc Hydrate Passionfruit Sparkling Water Distribution: National
is available nationwide in six-pack cases of
12-ounce cans for a suggested retail price
of $24. Consumers also can get a monthly PARTY IN A CAN
subscription of a six-pack for $19.20 a month. Western Son Vodka released its new canned cocktails in four flavors:
Vodka Mule, Watermelon Vodka Seltzer, Lime Vodka Seltzer and
Blueberry Vodka Lemonade. The vodka-based beverages contain
two cocktail servings in each can and features a 10 percent
TO SUBMIT A NEW PRODUCT FOR CONSIDERATION, alcohol-by-volume content. Four-packs of individual flavors are
VISIT BEVINDUSTRY.COM/NEWBEVERAGEPRODUCTSUBMISSION available nationwide for a suggested retail price of $9.99.

16 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


Sponsored By
Developers of some of the
world’s best known brands
allenflavors.com

COMMUNITY 2X CAFFEINE COFFEE


HEINEKEN 0.0 Community Coffee Co., Baton Rouge, La.
Heineken USA, White Plains, N.Y. Telephone: 800/884-5282
Telephone: 914/681-4100 Internet: communitycoffee.com
Internet: heinekenusa.com Distribution: National
Distribution: National

FOR A POWERFUL DAY


A LOW-CAL BREW Community Coffee Co. launched a new single-serve coffee line:
Heineken USA announced the launch of its latest innovation: Heineken 0.0, an Community 2X Caffeine Coffee, which offers a natural extra boost
alcohol-free malt beverage that is brewed with a unique recipe for a distinct of caffeine from coffee extracts, the company says. Community
balanced taste that contains 69 calories in each bottle, the company says. 2X Caffeine Coffee is crafted with 100 percent Arabica coffee
Heineken 0.0 is a versatile brew for a variety of drinking occasions, and connects beans and packaged in single-serve pods compatible with Keurig
with the discerning tastes of a wide range of drinkers, it adds. Heineken 0.0 is on 2.0 K-Cup Brewers, it adds. The 3.88-ounce pods are available
sale nationwide in six-packs of cans and bottles. Price varies from state-to-state. nationwide for a suggested retail price of $8.49 for a 10-pack.

VIVE HARD SELTZER


Braxton Brewing Co., Covington, Ky.
Internet: braxtonbrewing.com HEALTHY & HANDCRAFTED
Distribution: Select markets Braxton Brewing Co. released Vive Hard Seltzer, a
hard seltzer crafted with pure Kentucky artisan
water, the company says. Containing 100 calories
and 2 grams of carbohydrates, Vive Hard Seltzer is
available in four flavors: Mango, Lime, Dragonfruit
and Grapefruit. Packaged in 12-ounce slim cans,
Vive features a 5 percent alcohol-by-volume
content and is available in select Kroger stores.

CONURE WATER ENHANCERS


Conure LLC, Chicago
Telephone: 872/225-0945
Internet: conurelife.com
Distribution: National

HENDRICK'S ORBIUM GIN


William Grant & Sons Ltd., New York
ADAPTOGEN-INFUSED Internet: hendricksgin.com/orbium
Conure LLC launched its self-titled line of Distribution: Select markets
super herb and adaptogen-infused water
enhancers. Packaged in single-serve
packets, Conure contains no sugar and is low LOTUS FLOWER BOMB
in calories, the company says. Each packet Hendrick’s Gin, a brand of William Grant & Sons Ltd.,
contains herb flavors and extracts and is announced the launch of a new limited-edition gin —
designed for 16-ounces of water, it adds. Orbium — to the U.S. market. A reinterpretation of
Available in Ashwagandha + Lime, Ginger the rounded house style of the original Hendrick’s Gin,
+ Lime, Tumeric + Lime and Holy Basil, Orbium is instilled with additional extracts of quinine,
Conure is offered nationwide for a suggested wormwood and lotus blossom, the company says. The
retail price of $1.99 for a single-serve and 44 percent alcohol-by-volume gin is available in select
$10.99 for a box of six packets. bars throughout the United States.

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 17


Special Report

The many layers


of health, wellness
Trend becomes WHEN TRYING TO INSTILL AN APPRECIATION FOR THE COMPLEXITY OF ART,
many art teachers and af icionados will highlight Georges Seurat’s 19th century
more complex for
painting titled “A Sunday on La Grande Jatte.” The oil on canvas is celebrated for
consumers its juxtaposition of optics and color exemplified by painted use of dashes and
dots. The complexity of Seurat’s famous painting has become a representation of
the post-Impressionist movement and the innovative ways artists transitioned
into the avant-garde art movement. Although unlikely to be celebrated in a high-
traff ic art museum, today’s health-and-wellness movement has shown itself to
exhibit its own layers of complexity to support today’s consumers.
“Americans’ definition of health and wellness has Nutrition & Weight Loss accounted for $702.1 billion
gotten more complex,” says Gary Hemphill, managing of the wellness economy in 2017, up from $647.8 billion
director of research for New York-based Beverage in 2015, according to data from GWI. This puts the
Marketing Corporation (BMC). “It varies by individual wellness sector’s average annual growth rate at
and it has morphed over time.” 4.1 percent, it adds. In fact, GWI estimates that the
The Miami-based Global Wellness Institute (GWI), wellness industry now accounts for 5.3 percent of the
a nonprofit organization with a mission to empower global economic output.
wellness worldwide by educating public and private Given the economic impact health and wellness
sectors about preventative health and wellness, also has accrued, analysts foresee its reach only growing,
recognizes how health and wellness has evolved. particularly within the food and beverage markets. For
“Once upon a time, our contact with wellness was example, Chicago-based Mintel identified “Through
occasional — we went to the gym or got a massage,” the Ages” as one of its trends to watch in its November
said Katherine Johnson, a GWI senior researcher, in a 2018 “Global Food and Drink Trends 2019” report.
statement at the 12th annual Global Wellness Summit “Healthy aging is emerging as a food and drink
in October 2018. “But this is changing fast: a wellness opportunity in 2019,” the report states. “Preparing oneself
mindset is starting to permeate the global consumer for a longer, healthier lifespan is particularly relevant
consciousness, affecting people’s daily decision-making as consumers view health and wellness as a holistic,
— whether food purchases, a focus on mental wellness proactive and ongoing pursuit. Consumer priorities for
and reducing stress, incorporating movement into daily health and wellness is a continuation of the importance of
life, environmental consciousness, or their yearning for self-care, a habit identified in Mintel’s ‘2018 Global Food
connection and happiness. Wellness, for and Drink Trend’ Self-Fulfilling Practices.”
more people, is evolving from rarely to Noting that the global population of those aged
daily, from episodic to essential, from 60 and older only continues to expand, the market
a luxury to a dominant lifestyle value. research firm highlights the relevancy that aging has
And that profound shift is driving and what that can mean for manufacturers for the food
powerful growth.” and beverage markets.
“Longer lifespans present opportunities for food
GROWING OPPORTUNITIES and drink manufacturers to take inspiration from the
According to the GWI, the global beauty industry and create products that help people
wellness industry has grown to look and feel young,” the report states. “Food and
be a $4.2 trillion market across 10 drink products can help people of all ages improve
sectors: Personal Care, Beauty & their bone, joint and brain health, as well as proactively
Anti-Aging; Healthy Eating, Nutrition address other age-related health concerns.”
& Weight Loss; Wellness Tourism; Mintel encourages food and beverage manufacturers
Fitness & Mind-Body; Preventive & to explore formulations through better-for-you
Personalized Medicine and Public ingredients that support segments like bone and joint
Health; Traditional & Complementary health, immune systems and cognitive health. It also
Medicine; Wellness Real Estate; Spa identifies a growing healthy aging segment: eye health.
Economy; Thermal/Mineral Springs; “Considerations such as eye health are also growing
>>

Mintel’s “Through the Ages” trend encourages food and beverage and Workplace Wellness. in importance in our technology-centric culture, which
manufacturers to explore formulations through better-for-you ingredients
that support segments like immune systems. Blossom Water reformulated As the second largest global wellness has many consumers looking at screens for the better
its lineup to include Staimune, a shelf-stable probiotic. (Image courtesy of sector (Personal Care, Beauty & Anti- part of the day,” the report states.
Blossom Water LLC) Aging being No. 1), Healthy Eating, As these healthy ageing product attributes gain

18 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By Jessica Jacobsen

“Early adapters of wellness modalities — especially aff luent


celebrities who receive attention for their lifestyle choices —
may have more resources to spend on healthy,
organic food, special fitness programs, etc. However,
the Global Wellness Institute is committed to the
democratization of wellness, i.e., wellness for all.”
— Beth McGroarty, vice president of research for Global Wellness Institute

footing in the beverage market, ingredients that “In general, the new emphasis on wellness crosses all
support these properties also are likely to proliferate. demographics,” McGroarty says. “Of course, children
“With more consumers taking an active interest in are deeply influenced by the habits and practices of
their long-term health, expect to see more nootropics, their parents or caregivers. Early adapters of wellness
a broad group of supplements like L-theanine, B modalities — especially affluent celebrities who receive
vitamins, choline and omega-3s, that claim to enhance attention for their lifestyle choices — may have more
brain power, focus, alertness and general well-being,” resources to spend on healthy, organic food, special
Mintel forecasts in the report. fitness programs, etc. However, the Global Wellness
BMC’s Hemphill adds that health-and-wellness Institute is committed to the democratization of
formulations have come to be about an amalgamation wellness, i.e., wellness for all.”
of not just what’s in the product but also what isn’t. To support this mission, the GWI launched The
“In a nutshell, healthier drinking and eating today Wellness Moonshot in 2017, which is designed to create
entails fewer calories, less sugar and more natural a world free of preventable diseases, it says.
and organic products,” he says. “Drinking healthier “The Wellness Moonshot is a call to action to
beverages is as much about what’s in the products as eradicate chronic, preventable disease worldwide by
what’s not in the products.” uniting the health and wellness industries,” McGroarty
Among the beverage categories, Hemphill notes explains. “GWI’s goal is to aggregate information on
that some have reaped the benefits of the health-and- a global scale, collaborate to share knowledge and
wellness movement more than others. eliminate silos, and accelerate the pace of change to
“The single biggest trend in health and wellness achieve significant results. The campaign has received
from a category perspective has been the emergence of strong support from global wellness leaders, medical
bottled water as the most popular beverage category professionals, and committed organizations.”
in the U.S.,” he says. “On the flip side, the decline of When it comes to developing food and beverages
carbonated soft drinks has come about in part due to that support healthy aging, Mintel says that
the consumer movement to healthier beverages.” manufacturers should start with senior consumers.
Based on estimated wholesale dollars, the wellness “At a time when record numbers of people are living
and functional ready-to-drink (RTD) beverage segment to be 100 years old, food and drink companies are
accounted for more than $81.3 billion in 2017, according challenged to address the wide variety of health states
to BMC data. This is up from the more than $70 billion of consumers aged 55 and older,” the report states.
in 2012. “The diversity of seniors’ needs can be addressed
“Beverages with health-and-wellness attributes through food and drink for medical purposes as well
are outpacing the growth of the overall market and as products designed for prevention, with formulations
are likely to continue to do so in the years ahead,” that are nutritious, flavorful, and easy to consume.”
Hemphill says. For example, the report details that 20 percent of
Although the GWI doesn’t specifically track U.S. consumers aged 65 and older currently use a
beverage metrics, Beth McGroarty, vice president of supplement for joint health.
research for GWI, highlights that an observational Because what might be important to a person as
analysis does show an increase in demand for food and an adult is not the same as to a child and vice versa,
beverages that are natural or organic. She notes that variations of health and wellness exist in the market,
this could be linked to various reasons. BMC’s Hemphill says. “As the beverage landscape has
“[As] one example, informed parents understand proliferated, we have seen marketers develop products
the connection between diseases like Type 2 diabetes for specific demographic groups,” he says.
and diet and realize they can spare their children the But no matter which demographic food and
hardship of making lifestyle changes later in their lives beverage marketers are targeting, Mintel highlights
by instilling healthy habits at an early age,” she says. the lessons that can be learned from the beauty and
“In 2013, WHO estimated there were 42 million obese personal care markets. “Beauty and personal care has
children under the age of five worldwide.” successfully established a model for healthy aging by
designing proactive products that are marketed with
DIVERSE DEMOGRAPHICS positive language to people of all ages,” the report
>>

Gâc Lemon Water delivers phytonutrients


With the health-and-wellness market more complex states. “Food and drink brands can follow similar from the gâc fruit. These nutrients include
than in past years, analysts can trace the changing models and target healthy aging products toward carotenoids that provide antioxidant
protection while preserving collagen for skin
layers to diverse health-and-wellness trends across consumers of any age who want to prepare their bodies firmness and radiance, the company says.
demographics. for longer lifespans.” BI (Image courtesy of GacLife LLC)

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 19


Cover Story

MAKING
THE SHIFT WHEN IT COMES TO BEVERAGE
consumption choices, many will
highlight that consumers are not at a
loss for solutions. However, data shows
that on a volume basis, one category
has emerged as the latest favorite:
bottled water. According to a May 2018
release from the International Bottled
Water Association (IBWA) and Beverage
Marketing Corporation (BMC), bottled
water was the No. 1 beverage product
in the United States by volume, for the
second year in a row.
Given the volume growth of packaged water,
beverage manufacturers have taken notice of how
consumers are reaching for hydration beverages over
sweeter options, prompting them to rethink their own
portfolios.
This shifting sentiment caught the attention of Cott
Corporation, Tampa, Fla., and Mississauga, Canada,
back in 2013, thereby paving the way for the beverage
manufacturer to create a new identity for itself.
“We have an annual process whereby we look out
over the next three, five, seven and 10 years, which
culminates in a Global Senior Leadership meeting in the
third quarter of each year,” explains Tom Harrington,
Chief Executive Officer (CEO) of Cott. “As a part of
this process in 2013, our senior leadership team lead
by Jerry Fowden (our CEO during the transformation)
and Jay Wells, CFO of Cott determined that the sugary
sweetened beverage market would continue to decline
as the consumer was shifting consumption from sugary
sweetened beverages and toward healthier alternatives,
including a variety of products within the water and
coffee categories.”

COTT CORPORATION SEES BRIGHT


However, that was not the only factor impacting
the then private-label beverage manufacturer. “In
addition to this shift in consumer behavior, we also

FUTURE WITH HOD WATER


experienced pricing and margin pressures from our
retail customers,” Harrington details. “This price and
margin squeeze was occurring during a time period
with relatively low commodity costs, and management
forecasted potential future challenges in the event our
commodity prices increased.
“Even with these pressures on our business,
we consistently delivered strong free cash flow
>>

Tom Harrington assumed the position of chief executive officer for Cott Corporation after it had completed its
new company identity. Harrington previously served as president of DS Services, which Cott acquired in 2014. but had not been rewarded by the markets in our
(Image courtesy of Cott Corporation) stock price,” he continues. “With this backdrop, we

20 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By Jessica Jacobsen

developed a strategic plan, which incorporated a shift costs, and our bottles are reused 50 plus times thereby
from a focus on small bolt-on acquisitions to larger minimizing any increases in the costs of the materials;
scale acquisitions that would allow us to quickly move [and] growing categories with the ability to leverage
the needle and begin to transition our business and an international footprint and in turn drive additional
diversify our revenues and profits with meaningfully profits within the businesses,” he says.
lower customer concentration.” Also part of Cott’s transformation was the sell-off of
Through a strategic plan review process, the coffee and its legacy carbonated soft drink traditional beverage
water markets, particularly home office delivery (HOD), manufacturing business. In 2018, this was completed with
caught Cott’s attention. Harrington explains that the the $1.25 billion sale to Refresco, which included Cott’s
company found that it could seize an opportunity to be North America, United Kingdom and Mexico beverage
the leader in the HOD water market while lowering its manufacturing businesses.
customer concentration and exposure to commodities. Harrington notes that it wasn’t necessary to divest
Although the prospectus on HOD water was most from this business; however, by doing so, it allowed Cott
desirable, the company found the market for HOD and to focus on its new business ventures while significantly
foodservice or “on-the-go” coffee to be appealing as well. reducing the leverage of the business.
“HOD was also a channel with good historical growth Although Cott already has made high-profile M&A
with expected growth many years out into the future,” moves, the company realizes that more acquisitions
Harrington says. “In addition to HOD water, we also will likely be part of its future as it strives to create more
liked the ‘on-the-go’ coffee channel and bookmarked value for its shareholders and customers.
S&D Coffee as the business that we would like to have “Throughout 2018, we noted that we would execute
within our portfolio as it was a leader in not only the approximately $40 to $60 million of tuck-in or smaller
roasting and grinding of coffee and blending of tea acquisitions,” Harrington says. “We executed against this
for many of the well-known quick-service restaurants, priority in 2018 completing several tuck-in acquisitions
convenience stores and distributors throughout the as well as the acquisition of Mountain Valley, which is a
U.S., but it was also the only vertically integrated coffee fast-growing premium American branded spring water
and manufacturer with extract production capabilities bottled in 5-gallon glass bottles as well as a variety of
relative to its peers. other spring, sparkling and flavored water bottle formats,
“Being a key supplier within the ‘sticky’ distribution which will benefit not only our HOD water channel but
channel for so many well-known customers as well as also has many opportunities in foodservice. In addition,
being a leader within the fast-growing extract channel, we have noted that we would look at more scale
(think cold-brew coffee, flavored coffees, the concentrates opportunities over the coming years in the areas of HOD
used to make ready-to-drink coffee, etc.), we looked at water, filtration and coffee, tea and extracts with HOD
S&D as the ideal business to acquire when making our water being the primary area that we would look to grow
move into the ‘on-the-go’ coffee channel,” he continued. ahead of the other areas.”

BUYING & SELLING ‘ROUTED’ FOR SUCCESS


With the vision to become the leader in HOD water and Following Cott’s disposition of its traditional business,
coffee, Cott began its merger and acquisition (M&A) the business now sees more concentration from its
activity in 2014. The first acquisition occurred in May of Route Based Services operating segment. According to
that year with the purchase of Aimia Foods, a provider Harrington, the Route Based Services operating segment
of hot drinks to foodservice and catering channels in the accounts for 70 percent of the company’s revenue and
United Kingdom. more than 80 percent of its earnings before interest, tax,
Toward the end of 2014, Cott made its initial foray depreciation and amortization (EBITDA) with the North
into the North American HOD water market with the American division of the Route Based Services segment
purchase of DS Services, a direct-to-consumer services accounting for over 70 percent of the revenue of the
provider across home and office delivery water, office Route Based Services operating segment.
coffee and filtration services in the United States. “Within Route Based Services, our water delivery
The company continued to add to its arsenal in 2016 services (primarily the 3- and 5-gallon returnable water
with the acquisitions of Aquaterra, a Canadian distributor bottles) generates around 70 percent of the revenues,
of home and office delivery; S&D Coffee & Tea, a custom while office coffee services generates 10-12 percent
coffee roaster and distributor of coffee and tea-based of revenues, and filtration generates 3-4 percent,”
beverage solutions for the U.S. foodservice market; and Harrington details.
Eden Springs, a European direct-to-consumer home and Across all of its markets, Cott’s services business
office delivery water and office coffee services provider reaches 2.5 million customers while the company’s U.S.
with operations in 18 countries. HOD business, covers more than 90 percent of the U.S.
When making these acquisitions, Harrington details population, serving 1.7 million customers. Of those
that it was a collection of factors that motivated Cott to 1.7 million U.S. customers, 1.4 million are HOD water
make these M&A moves. customers, Harrington says.
“The key characteristics of the HOD market that When Cott acquired the HOD businesses, it was able
appealed to our team — and myself as I was the to retain the heritage brands for those regions. Those
President of DS Services when Cott acquired the brands include Hinckley Springs in the Chicagoland
>>

business — was the following: minimal customer area, Alhambra in Northern California, Sparkletts Cott Corporation’s North American Route
Based Service segment accounts for 70 percent
concentrations; the ability to implement price increases in Southern California and Texas, and Kentwood in of the company’s revenue and more than
to offset inflation; limited exposure to commodities, Louisiana. It also offers Mountain Valley spring and 80 percent of its EBITDA, Tom Harrington says.
for example, we have energy surcharges to offset fuel sparkling water, a water that has been continuously (Image courtesy of Cott Corporation)
continued on page 22

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 21


Cover Story
continued from page 21
bottled in Hot Springs, Ark., since 1871, the company friendly returnable bottle with sparkling capabilities.”
says. However, portfolio expansion is not the only growth
Beyond its variety of water brands, Cott also offers models that Cott is examining for its North American
a plethora of packaging formats that help serve the markets.
customized needs of its consumer and commercial “As we look to 2019 and beyond, we have a variety
customers. of growth initiatives and would expect growth to come
“The key driver of our business and the success of our from increased customers, increased consumption per
business is 3- and 5-gallon returnable water bottles, but we customer, pricing initiatives, small tuck-in or customer
also offer a variety of other products such as 500-ml single- list additions and the benefit of our customer experience
serve cases of spring and purified water; premium glass initiatives that will drive further cross selling and an
in 5-gallon, 333-ml, 500-ml and 1-liter formats; sparkling increased retention rate,” Harrington explains. “Within
water in a variety of packages; sparkling flavored water North America we have expanded our direct sales force to
in a variety of packages; in addition to a variety of other focus on continuing to grow our commercial customer base
ancillary or partner products such as La Croix, Voss and throughout our footprint. We have also consistently driven
FIJI,” Harrington says. “We also offer a variety of licensed around 25 percent of our new customers from our route
products within our route-based coffee services program service representatives as they benefit by adding additional
including Starbucks, Lavazza, Mars and Keurig. And let’s customers to their routes as they are primarily paid on a
not forget our product offerings in the fast growing filtration commission basis.
category where we service over 150,000 customers across “We also have a focused effort in growing our residential
our footprint with this being one area that we would look to customer footprint in the U.S. through the utilization of a
develop more scale over the next three to five years.” booth program in which we capitalize on the customer base
Because the Route Based Services division is direct- of a large retail partner by setting up booths on a weekly
to-consumer, those working in the field are the main basis in their stores,” he continues. “In addition, we have
point of contact for consumers. Harrington explains seen a significant increase in customer additions through
that the company works to support these route service our online and social media marketing activities.”
representatives, thereby ensuring a positive experience
for the consumer. SPEEDY DELIVERY
“We have dedicated route service representatives, With more than 2,400 routes dedicated to its North
the face of the company, that deliver product directly to American HOD delivery market alone, Cott understands
our customers as well as a state-of-the-art customer care the importance of streamlining its distribution operations.
center, the voice of the company,” he says. “We track Across its 20 markets, the company has more than 3,600
our performance daily to ensure that we are satisfying routes in total.
customers. We are currently experiencing the lowest quit To support these operations, Cott’s water route delivery
rates that we have seen within our North American Route utilizes 10 bay side-load route trucks, while its coffee
Based business. This is due in large part to a number of delivery business features 18 20-foot step vans, Harrington
initiatives that we have implemented over the last few explains. Its equipment service fleet primarily is comprised
years including updating our route handhelds to iPhones of cargo vans.
and linking them to our customer care center, which we Also key to its delivery support is the use of routing
consolidated into one state-of-the-art center from three software solutions. “We are currently implementing Omni-
separate centers back in 2015. We continue to upgrade tracks in the U.S. and utilize it in Europe for routing,”
our customer experience in areas of website design and Harrington says. “Thus far, the software and tools have
flexibility, product offerings, as well as a mobile app that we allowed us to become more efficient throughout our
have in development.” system. We are also working with more fuel-efficient
Cott also continues to bolster its product portfolio. vehicles with ‘clean’ technology in addition to reviewing
Although still water makes up large portion of its HOD the opportunity to incorporate propane technology. In
water share, it does offer sparkling options and is looking addition, we are implementing new fleet software that
to add more. will reduce our dependency in areas that we have needed
“This is an area where we have started to expand — to outsource repairs and maintenance — we typically
although it does not make up a large portion of our current employ our own mechanics but there are times when we
sales, we would expect it to grow over the coming years utilize third parties due to scheduling conflicts, etc. — and
as we improve our cross-selling capabilities, expand our the software is designed to assist us with improving/
products within our footprint and add new products,” reducing vehicle downtime both of which will reduce fleet
Harrington explains. “For instance, we acquired Mountain maintenance expenses and increase staff productivity.”
Valley Springs in October of 2018, an American premium-
glass spring, sparkling and flavored bottled water ACROSS THE POND
company. We would look to start increasing the availability Although Cott has a vast presence throughout the United
and sales of these products over the coming years. States and Canada, the reinvented beverage company also
“In 2019, we have also added the distribution of La Croix, maintains notable representation in 17 European markets
which is a very popular sparkling beverage to our product and Israel.
offerings and based upon the success that La Croix has For in-house operations (customer service, IT and
had in retail outlets, we would expect good growth from procurement), Cott has a centralized senior management
this new product offering,” he continues. “In addition, we team that works across the 18 markets. However, the day-
have begun working on a water cooler that has sparkling to-day operations is unique to each country, Harrington
>>

The success of the on-the-go coffee channel


capabilities, which we will roll out in Europe in 2019, explains.
appealed to Cott Corporation’s interest in S&D
Coffee. (Image courtesy of Cott Corporation) resulting in the ability to deliver our environmentally- “We do utilize best practices in areas such as marketing,

22 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


procurement, product offerings, etc. across the that these products are utilized in different channels
business,” he says. “One of the benefits of having 18 of our business. For instance, our small office / home
different countries is that the diversification allows us office or SOHO focus within HOD water typically
to stay on track throughout the year as small hiccups results in coolers being placed in areas that do not have
seen in one area are offset by wins in other areas.” water access so the placement of a filtration unit is not
Counter to North America, the European division practical.”
is primarily made up of commercial accounts. Yet,
Cott does see growth potential within the direct-to- ENVIRONMENTAL SOCIAL
consumer market in Europe. AND GOVERNANCE
“[W]e see the opportunity to market to residential Cott’s new shape and form also allows it to now focus
customers as a future source of growth and we are on areas such as sustainability.
working on technology that would work better with “Sustainability lies at the heart of our company
residences in Europe as they typically have less space — it’s both our legacy and our future,” Harrington
within their kitchens relative to North America,” says. “Our products and services are focused on
Harrington says. “The service offering, plants, and contributing to a sustainable future. We take advantage
products are very similar to the U.S.” of environmentally friendly processes that support
Adding specifics, Harrington notes that Western the health of the planet. Our successful sustainability
Europe has a larger population of filtration users, while programs have reduced landfill waste, our carbon
HOD is more desired in Eastern Europe. footprint and water usage.”
“As a result, the western part of Europe is a flat to Many of the products used within the HOD
slight growth market for HOD while we see good water business can be thought of as some of the top
growth in Eastern Europe,” he says. “We also offer environmentally friendly packages currently available,
filtration services and see this as an opportunity as the company says.
the filtration market has very good growth in both the “We are able to utilize our 3- and 5-gallon water

>>
U.S. and Europe but it is very fragmented and has a bottles 50 times before we grind them up and utilize Sustainability is a key focus for Cott Corporation.
much smaller base as there are more HOD placements a portion for the next generation of water bottles and The company is able to use its 3- and 5-gallon water
bottles 50 times before they are ground up for the
throughout the areas that we operate in. In terms of the remaining portion is utilized within other plastic next generation of water bottles, Tom Harrington
filtration versus HOD, we like both channels but find recycled materials,” Harrington says. BI says. (Image courtesy of Cott Corporation)

Does This Look Familiar?

WE WON’T
LEAVE YOU
HANGING!!
5V-SV^0U[LYY\W[PVU 5V)HNZ
5V*SLHU\W 5V+V^U[PTL 5V2PKKPUN

-PS[YH[PVU+V^U[V 
100% AUTOMATIC SELF CLEANING
WATER FILTRATION SYSTEMS
2672 S. La Cienega Bl vd, Los Angeles, C A 90034 USA
(800) 336-1942 (310) 839-2828 www.t ekleen.com inf o@t ekleen.com

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 23


Up Close With...

Busy as a bee
NOT MANY 12 YEAR OLDS CAN SAY THAT THEY HAVE PITCHED THEIR BUSINESS
Me & the Bee’s
on TV’s “Shark Tank,” introduced then-President Barack Obama at the United
Lemonade celebrates State of Women Summit, who jokingly suggested he should work for her, and
10 years of ‘bee-lieving’ formed her own nonprofit, Healthy Hive Foundation, which is aimed at saving
the honeybee and the food supply.
But it’s safe to say that social entrepreneur and and logistics. Younger brother Jacob helps out with
philanthropist Mikaila Ulmer is no ordinary young photography, while older brother Khalil assists
woman. From a simple lemonade stand and using with computer science, “but because he’s a junior
her great granny Helen’s flaxseed lemonade recipe, in college, he doesn’t have as much time to spare
Ulmer, now 14, is the founder and chief executive anymore,” Ulmer says, laughing.
officer of Austin, Texas-based Me & the Bees To respond to the growth of the company, Me &
Lemonade. the Bees expanded its hive, which now includes
The purpose-driven company offers ready- three regional broker teams, representing 15 states
to-drink (RTD) premium “lemonade that tastes and a new national sales team, she says.
good and does good” in 12-ounce sustainable Named one of Time’s 30 Most Influential
glass bottles in four flavors: Original with Mint, Teenagers, Ulmer is a highly sought-after speaker,
Ginger, Prickly Pear and Iced Tea/Lemonade. workshop facilitator and media presence whose
The clean-label, freshly squeezed lemonades story has been showcased in teenvogue, Ebony,
contain no high-fructose corn syrup, no “Good Morning America,” the “Today Show,”
preservatives and additives, and blends honey “20/20,” among many others.
with real lemon juice and flaxseed, which is Also worth noting is her 2015 appearance, where
rich in omega-3 fatty acids and antioxidants, at the age of 9 on the aforementioned TV show
the company says. The lemonades also are shelf “Shark Tank,” her passionate pitch resulted in a
stable and gluten free. $60,000 investment from businessman Daymond
“Our most popular SKU is Prickly Pear,” Ulmer John. Two years later, a consortium of former and
says. “We’ve come a long way from being available current American football players invested more
in a lemonade stand in front of my house, then a than $1 million.
local pizza store and then Whole Foods Market in Now known by many as “the Lemonade Girl
Austin, Texas. from Shark Tank,” the high school freshman at
“Me & the Bees is buzzing off the shelves in St. Stephens Episcopal School in Austin, Texas,
30-plus states from New York to California,” says she loves school and learning. Noting that she
she continues. “I love my flavors because I is fluent in Spanish, her other favorite subjects are
use ingredients that are known to be both fun math and science.
and functional. There are unique flavors like Although balancing a successful business at
mint, which is a cooling agent; and half tea/ such a young age is hard, Ulmer credits her family,
half lemonade, which has antioxidants; and business partners, investors and customers for
even prickly pear, which is known as an anti- the company’s success. Although diminutive in
inflammatory.” stature, the 5-foot-tall spirited teen is well aware
Word of mouth and Ulmer’s passion, persistence of the importance of serving as a role model for
and ingenuity has led to a distribution deal with African-American teens and “really everyone”
UNFI, resulting in more than 360,000 bottles wanting to pursue their passion, she says. As a
of the lemonades being sold annually in about result, Ulmer soon will begin writing a book, she
600 retailers, including Whole Foods, Wegmans, adds.
Gelson’s and Natural Grocers. A distribution deal “This is pretty important,” Ulmer enthuses. “I
with KeHe is in the works. receive a lot of mail from students and teachers
The family owned and operated company has who share with me that they follow me on social
grown 490 percent from when it first began 10 media (@MikailasBees, hashtag #girlpower)
years ago, and would not have been possible and they congratulate me on all the hard work.
without her family’s support, Ulmer says. In They often ask me to come visit their schools or
addition to her mother, D’Andra, the company’s organization to inspire kids.
chief marketing bee who helps with social media, “Balance is key,” Ulmer continues. “I get a lot
events, story-telling and the family schedule, of help from my mom. She helps manage my
her father, Theo, serves as chief worker bee and schedule and makes sure I have time for school,
(Image courtesy of Me & the Bees Lemonade) handles finance and operations, purchase orders work and play.”

24 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By Barbara Harfmann

BEE-LIEF FROM THE BEGINNING loved speaking at the United State of Women and
Although Me & the Bees Lemonade’s business and introducing President Obama. I also loved debuting
its ability to galvanize a generation of “bee-lievers” my new big yellow booth at [Natural Products] Expo
continues to thrive, Ulmer recalls that this journey West in 2018. I met so many people, poured so many
started as the result of an unlikely and somewhat cups of lemonade and closed a few retail deals. I had
painful circumstance. so much fun, traveling to all the booths at Expo West
“In 2009, at the age of four, I got stung by two and getting enough snacks and goodies for months,”
bees in one week, and became super afraid of she says, laughing.
the bees or anything that buzzed,” she says. “My Ulmer says she’s exited to return to Expo West
family, who are big on outdoors, asked me to do in March and notes that her company will be part
research on the bees in hope that I would not be of the Hot Products Pavilion and located at booth
afraid of insects — and that I would return to N1307. There she plans to unveil a less-sweet lineup
gardening in our back yard. So I listened to my of her lemonades. The company also is launching
parents and we started to do research on honey an all-natural and organic herbal Lip Balm featuring
bees. I learned so much about the littlest and moistening beeswax, she says.
biggest insects in our food chain. Most importantly, With Ulmer at the helm, the future looks “bee-
I learned that they were dying at an alarming rate utiful” for Me & the Bees Lemonade. “I never thought
and that I wanted to save them. for one minute that the bee stings … and of course
“As I thought about how I was going to save them, listening to my parents to do research, would lead me
two more important things happened,” she continues. on the path to discovering my passion and purpose,”
“I signed up for a Children’s Entrepreneurship she says. “Fast-forward to 2019, 10 years later, and
event and my great granny Helen sent me her 1940s I am so proud to celebrate being in business for 10
cookbook with her flaxseed lemonade recipe. It hit years.

>>
me all at once. I would sign up for the entrepreneur “You can ‘bee’ sweet and ‘bee’ profitable. You do Now 14, social entrepreneur and philanthropist
Mikaila Ulmer created Me & the Bees Lemonade
event, use my great granny Helen’s recipe, sweeten not have to choose,” she continues. “I started at a
from her great granny Helen’s flaxseed lemonade
it with honey and call attention to the plight of the very early age, using my business and profits to save recipe, hoping to galvanize a generation of “bee-
bees. For several years, I would sell my lemonade the honey bees. I never stopped ‘bee-lieivng’ in my lievers” to save the honey bees. (Image courtesy
at different events and many times, in front of my dreams.” BI of Me & the Bees Lemonade)
house.”
Inspired by her mom and dad, Ulmer says she
always shared her profits with organizations helping
to save the honey bees. “My motto was and is ‘give,

π
save, spend,’” she says.
During the past 10 years, the company
continues to donate time, money and resources
to several organizations like Heifer International,
which provides gifts of honey to needy families
worldwide; the Texas Bee-Keepers Association,
which supports ongoing research through Texas
SHIPPING SUPPLY SPECIALISTS
A&M University on the preservation of bees in the
state of Texas; and the Sustainable Food Center
of Austin, a nonprofit that helps to strengthen
READY, SET, WRAP!
the local food systems and provides access to OVER 300 STRETCH WRAP
nutritious, affordable food. PRODUCTS IN STOCK
In addition, Ulmer’s nonprofit Healthy Hive
Foundation has funded the establishment of an apiary
and creating viable beehive colonies. She also has
taught more than 100 bee-keeping classes in which
thousands of bee-friendly seeds have been planted.
Me & the Bees Lemonade continues to donate
10 percent of its net profits toward saving and
growing the honeybee population, the company says.
The plight of the honeybees and sharing the story
of her fuzzy friends and their vital link to the food
chain is embedded in Me & the Bees Lemonades’
social consciousness. “More than 40 percent of
ORDER BY 6 PM FOR
commercial honey bees in the U.S. have been lost,”
SAME DAY SHIPPING
Ulmer explains. “At this rate, bees will cease to
exist by 2035. The loss of a species is tragic. The
loss of critical food worldwide is significant. And
economically speaking, bee pollination is worth
$15 billion to the U.S. farming industry alone.”
COMPLETE CATALOG
Because her mission to help the bee species has 1-800-295-5510
opened up many doors, Ulmer admits choosing uline.com
from among “so many cool” experiences is hard. “I

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 25


Channel Strategies

Save that money


Limited-assortment, IN RAPPER LIL’ DICKY’S HIT SONG “$AVE DAT MONEY,” HE SINGS ABOUT HOW
rappers should focus on saving money rather than spending it. The chorus ends
dollar stores
with “What we do? We gone save that money.” Although used in a different context,
performing well dollar and limited-assortment stores are upgrading their offerings and allowing
consumers to “save that money” when shopping for consumables.
“Discount retailers are increasingly stocking their “A substantial platform for change within the
shelves with consumables because that is what is industry has historically targeted exclusively
driving the demand,” says Claire O’Connor, industry low-income earners, [but] this consumer pool has
analyst at Los Angeles-based IBISWorld. “Previously, expanded in recent years to include middle-class
they were known for carrying discontinued or shoppers and even some high-income earners,” the
random items, but now operators are increasingly report states.
stocking their shelves with food and beverage “Bargain shopping has become an increasing point
products in an attempt to increase daily foot traffic.” of pride for many wealthy consumers, and this trend
has drastically increased the industry’s customer
CHANGING DEMOGRAPHICS base,” it continues. “As a result of this expansion,
The dollar and limited-assortment channel has IBISWorld estimates that industry revenue has
been a bright spot for the category, experts note. Jon increased at an annualized rate of 2.8 percent,
Hauptman, senior director of analytics at Winston- totaling $77.4 billion over the five years to 2018.”
Salem, N.C.-based Inmar, recognizes the increased Inmar’s Hauptman echoes similar sentiments
performance of the category. “Discount formats on the changing demographics of discount retail
featuring limited-assortment stores such as Aldi, shoppers. “Historically, discount retailers have been
Lidl and Save-A-Lot, and dollar stores such as Dollar largely shopped by middle-income to lower-income
General and Family Dollar grew dollar sales of households, i.e., those households that are looking to
approximately 6.6 percent last year, far outpacing stretch their weekly shopping budgets,” he says.
retail food as a whole, which grew dollar sales of “However, this is changing,” he continues. “We’re
only 2.1 percent,” he says. now seeing a wider demographic of shoppers
The discount retail channel accounts for visiting discount stores. This shift is being driven by
approximately $76 billion in annual sales, equating discount operations ‘refreshing’ their store formats
to a market share of almost 6.1 percent, Hauptman to make them brighter and more appealing, and
notes, citing data from Inmar’s “2018 Future of Food developing innovative, new and exclusive products.”
Retailing” report. Chicago-based Mintel also identifies the consumer
New limited-assortment stores constantly are shift toward shopping at discount retailers. “Dollar
opening in new markets across the United States, stores are increasingly appealing to consumers across
experts say. “Aldi, Dollar General and Family Dollar are income levels, with the upper income contingent
dominating the discount retail channel based on sheer seemingly discovering their value,” it’s December
volume,” Hauptman says. “Aldi operates over 1,800 2016 “Dollar Stores – US” report states.
limited-assortment stores across 35 states, while Dollar “Well-to-do millennials are also flocking to dollar
General and Family Dollar operate over 23,000 stores and have become core customers for retailers
dollar stores combined, with each selling food.” in the space that now have the challenge of retaining
When it comes to innovation, Aldi is these fickle, tech-obsessed shoppers,” it says.
dominating the discount retail channel by IBISWorld’s December 2018 report also highlights
continuously developing new, interesting the millennial effect on discount retailers.
items to keep attracting shoppers, he adds. “Millennials, in particular, are a bargain-hunting
“A second driver of the discount growth trend generation who have become increasingly prone
is that limited-assortment stores such as Aldi are to shopping at dollar and variety stores,” it says.
rolling out expanded fresh offerings (produce, “As the consumer pool has expanded to include
meat, etc.) as well as new premium and specialty wealthier shoppers, some industry operations have
foods that tend to attract a wider demographic been able to raise prices, which has contributed to
of shoppers than traditional budget-focused profit growth.
shoppers,” Hauptman explains. “IBISWorld estimates that industry profit will stand
Similarly to Inmar’s Hauptman, IBISWorld at 4.2 percent of industry revenue, which is higher
notes that the dollar and variety stores than the industry’s historical average,” the report
industry is a top performer, particularly continues.
>>

To attract a broader demographic of consumers, limited-


during the past five years to 2018, it states
assortment stores such as Aldi have expanded their fresh
offerings and added new premium and specialty foods, in its November 2018 report titled “Dollar & ECOMMERCE INTERRUPTION
Inmar’s Jon Hauptman says. (Image courtesy of Aldi Inc.) Variety Stores in the US.” As more and more retailers are delving into

26 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By Taylor Karg

the consumable eCommerce market, discount assortment and dollar channel, retailers are finding
retailers could potentially be facing drawbacks. ways to partner with eCommerce rivals rather than
“Traditionally, discount stores were able to stay solely compete with them, experts note. “To combat
competitive through their prices, but now online the rapid expansion of eCommerce, discount
retailers are able to offer similar prices due to lower retailers have begun building their own eCommerce
overhead costs, as well as increased convenience offerings,” Inmar’s Hauptman says. “[For example,]
and accessibility,” IBISWorld’s O’Connor says. Aldi is partnering with Instacart to offer online
“Furthermore, consumers are able to shop online shopping at their stores across the country.
for the best price, so they are increasingly choosing “Dollar stores are also finding that they need
to shop around rather than going to a specific brick- to have eCommerce offerings to stay relevant in
and-mortar store because when shopping in-store, today’s increasingly competitive retail market,”
there is no guarantee that they are purchasing the he continues. “Operating eCommerce dollar stores
product at the best price,” she adds. profitably will certainly be a challenge given
The eCommerce channel has become difficult the channel’s already low margins. While dollar
for dollar stores’ value proposition of rock-bottom stores are just getting started with eCommerce, it
pricing, Mintel’s report notes. “This conundrum will be interesting to see if they try to carve out a
becomes a challenge for dollar stores especially unique niche by becoming the unquestioned leader
as their core clientele shifts to comprise a higher in eCommerce in selected categories in which
percentage of millennials and higher income they already excel in serving both households
consumers in general,” it says in regards to the and businesses, as well as the ‘treasure hunt’ for
eCommerce channel. “These same shoppers also shoppers looking for interesting bargains.”
operate their lives online and expect to able to Going forward, dollar and limited-assortment
shop via whichever channel they choose. They may stores will have to expand their offerings in order
not be willing to embrace the dollar store business to stay pertinent. “Customers expect to have
model in the future, especially without a viable an omnichannel shopping experience and seek

>>
The demographics of discount retail shoppers has
way to purchase online and/or if comparable or innovation from dollar stores including more name shifted as more consumers are associating saving
better options are available at other businesses.” brands and better grocery selections,” Mintel’s money on consumables as a form of wealth, experts
Although eCommerce could threaten the limited- report says. BI note. (Image courtesy of Dollar General Corp.)

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 27


Between Drinks
<<
Superfruit in
<<We are Soccerr a super pack
Heineken announced W a mission to bring
With
it has strengthened its organic superfruit nutrition
o
longstanding support of tto the United States, SAMBAZON N
soccer by maintaining its debuted its Tropical Immunity
d
partnership with the UEFA A Superfruit Packs. With the immune-
S
Champions League (UCL) boosting properties of acerola as the
b
occer fans stay
and MLS, to ensure that soccer main ingredient, the superfruit pack is an
engaged and refreshed throughout the 2019 season. exotic blend of organic acerola, pineapple
Beginning March 1, Heineken’s fully integrated, and banana that can be blended into a
360-degree retail and on-premise We Are Soccer. smoothie, the company says. One serving
We Are Heineken. program, will encourage legal- of the Tropical Immunity Superfruit Packs
drinking-age fans to choose Heineken for all contains 10 times the vitamin C of an
their soccer viewing occasions and game-day orange, is 40 calories and has no added
celebrations. The program will tap into various sugar, it adds. “We are thrilled to introduce
digital platforms, including Twitter and the Tropical Immunity Superfruit Packs,
Facebook activations to drive consumers which is the beginning of a new line
to the Heineken Soccer website for of innovative products full of nutrient
game-day content and prizes. dense ingredients and health benefits,”
Cross-merchandising partnerships said Ryan Black, co-founder and chief
with Pringles and Cheez-It, executive officer of SAMBAZON, in a
compelling offers on Heineken statement. “… Our Tropical Immunity
products and game-day snack Superfruit Packs are a great way to
ADVENTURE essentials will lead to more basket quickly fuel up for the day ahead while
AWAITS rings, the company says. naturally fighting off illness.”
BY BARBARA HARFMANN
MANAGING EDITOR

I
n the new year, one of my goals is to eat healthier by
avoiding fast food and drinking more water. Thanks to a
21 day season of fasting and prayer at my church, I’m well
on the way. I’ve also pledged to be more adventurous in both my
DID YOU KNOW? 43%
travels and food and beverage choices.
Global coffee machine sales are likely to reach
For the first time, my husband, son and I are planning a trip 58,675 thousand units in 2019, growing at more
to Europe, specifically to Baja, Hungary, and Hatzfeld, Romania,
to attend the 4th World Meeting of the Danube Swabian than 4 percent compared with 2018, according to
Cultural Groups. As members of a German dance group, we will a Fact.MR study. Driven by easy operation, simple design
soak up the culture, attend wine tastings and cruise down the
famed Danube River in Budapest. and quality brewing, drip coffee machines will account for
It seems that I’m not alone in my quest for new adventures. nearly 43 percent of total coffee machine sales in 2019.
Innova Market Insights states that catering to “the adventurous
consumer” is No. 1 on the research firm’s “Top Ten Trends for — Research from a Fact.MR study on the evolving trends in the coffee machine market.
2019.” Targeting the increasingly adventurous consumers set
on new discoveries and experiences will be key in the food and
beverage industry, it states.
“The connected world has led consumers of all ages to << A viral sensation
become more knowledgeable of other cultures, contributing At the Golden Globes, a FIJI Water brand ambassador hydrating guests on the red
to 35 percent growth of ‘discovery’ claims when comparing carpet became a viral sensation after appearing in the background of a number
2017 and 2016 new product launch numbers,” it reports.
“… Consumers are moving out of their comfort zones to
of celebrity photos. In just three days, news of the FIJI Water Girl garnered more
explore bolder flavors and multisensory food experiences.” than 1.6 billion impressions, including appearances on “The Late Late Show with
At No. 2, the plant kingdom and the plant-based James Corden,” “Good Morning America” and in People. To capitalize on
market shows no signs of slowing down, as companies
and brands are “greening up” their portfolios to attract the hashtag #FIJIWaterGirl movement, the premium
mainstream consumers, the market research firm says. water company installed life-size standees at retailers
Rounding out the Top 5 are Alternatives to All, with nationwide. “For more than a decade, FIJI Water has
consumers adding alternative proteins like lentils and
chickpeas to their diets; Green Appeal, including waste shared the red carpet with some of Hollywood’s biggest
reduction through upcycled ingredients and post-consumer stars,” said Clarence Chia, vice president of marketing
recycling; and Snacking: the Definitive Occasion, a central and e-commerce for FIJI Water, in a statement. “Now FIJI
focus of innovation, which has globally seen a 10 percent
increase during the past five years [compound annual growth Water is sharing the red carpet experience in store with
rate] (CAGR 2013-2017), Innova states. retailers and consumers nationwide.”

28 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


2019
FEATURED
SPEAKERS

APRIL 30 - MAY 1, 2019|Swissôtel Chicago

AL CAREY,
DAWN of a
NEW DECADE
CEO,
PepsiCo North America

As the sun sets on the teenage years of the 21st century, the dawn of the
new roaring twenties is upon us. For the beverage market, this new decade
will see how the emerging trends from the previous time
period will mark their place in history. Whether it’s better-for-you solutions,
eCommerce, cannabis-infusions or much more,
MIKE REPOLE, beverages are sure to see the impact these trends will have on the
Founder & Chairman, future of the North American market.
BODYARMOR

Earl Bird Savings End March 31st


REGISTER NOW & SAVE $200

GOLD SPONSOR: SILVER SPONSORS:


PHIL ROSSE,
President,
Mike’s Hard Lemonade, Co.
BRONZE SPONSORS:

TABLETOP EXHIBITORS:

PRODUCED BY:
ANTHONY VON MANDL,
O.C., O.B.C., ¨

Founder & CEO,


The Mark Anthony Group of Companies

Learn More at BEVERAGEFORUM.COM


Packaging

A revolutionary
approach to packaging
Shrink, stretch labels TODAY’S CONSUMERS ARE BLESSED WITH AN EVER-GROWING CHOICE OF

continue to penetrate beverage solutions. As these beverage options proliferate, so do the packaging
options. Among the options, shrink and stretch labeling materials are “stretching”
beverage market the creativity brand owners can utilize for packaging.
“Shrink sleeves in the beverage market continue PETG used in shrink sleeves.
to be a strong packaging solution for our customers,” “Product run size may dictate the printing method
says Kimberly Flynn, marketing manager for Hammer more so than whether it’s pressure-sensitive or shrink,”
Packaging, Henrietta, N.Y. “The beverage market he continues. “We see shrink sleeves printed digitally,
in particular is extremely competitive, so to draw offset, flexographic and gravure, and cost increases in
consumers to your product on a crowded shelf, you that order. I feel people view products in shrink sleeve
really rely heavily on the stopping power of your as more desirable or valued higher than a competing
package decoration. The introduction of shrink sleeves product in a common label.”
with a 360-degree canvas revolutionized the way Neal Konstantin, president of PDC International,
packages are designed and we’ve only seen that trend Norwalk, Conn., also highlights the value that beverage-
continue to grow and evolve over time.” makers can attain when using shrink sleeves. “Shrink
Gwen Chapdelaine, marketing director for Elk Grove, labels have the best return on investment in terms of
Ill.-based Fort Dearborn Co., highlights that the visual brand impact by cost,” he says. “The total package
and branding appeal that shrink and stretch sleeves coverage and form-fitting graphics are second to none.”
provide have helped the labeling materials become Beyond value, Justin Slarks, director of marketing for
one of the fastest growing in the label market. Within Little Rock, Ark.-based Sleeve Seal, adds that stretch
beverage, Chapdelaine says one of the key contributors and shrink sleeves hold up across a rugged distribution
to shrink- and stretch-sleeve utilization is the growing process while offering a premium look.
number of new products entering the market. “Cost per impression, durability of the labels,
“Shrink and stretch sleeves help beverages recyclability and the ability to incorporate a tamper-
differentiate themselves on shelf by combining shape evident seal are all factors but the graphic possibilities
and color for 360-degree, eye-catching beverage are really what is the most appealing to manufacturers,”
packages,” she says. “This combination creates product he says. “We are seeing some great looking labels in
distinction and visual appeal not achievable with other the market that are an extension of what designers are
label formats. The sleeves can also incorporate tamper looking for in the ‘look’ of the product.”
evidence for product safety.
“Consumers are increasingly demanding EMBRACING THE MOVEMENT
transparency from the products they purchase,” For the beverage market, nearly all categories are
Chapdelaine continues. “Shrink and stretch sleeves can seeing brands that utilize shrink or stretch labels;
provide the consumer with transparency by using clear however, suppliers note that some markets are more
windows on portions of the label so that consumers can likely than others.
view the contents of the product in a clear container.” “We see a growing trend with performance and
fitness beverages (protein shakes, etc.), as this market is
MAKING THE INVESTMENT becoming increasingly competitive,” Hammer’s Flynn
When deciding on the type of labeling materials to use, says. “We’ve also seen an increase in shrink sleeves for
beverage-makers are tasked with considering a number aluminum cans — beer, sparkling beverages, etc. It’s
of factors. Although shrink and stretch sleeves might a great look, especially when you can incorporate the
come with a higher price tag, suppliers note that the metallic shine of the can itself with various coatings and
benefits make it worth the investment. varnishes to give it that extra pop.”
“Shrink sleeves are about 25 percent more expensive Fort Dearborn’s Chapdelaine highlights the alcohol
than pressure-sensitive labels generally speaking,” categories that have embraced the labeling material
says Mark Hill, vice president and assistant director of trend. “We’ve also seen more spirits products are being
research and development (R&D) for INX International introduced in sleeves and more can beverages are now
Ink Co., Schaumburg, Ill. “Sleeves can offer nearly utilizing sleeves,” she says. “In the craft beer market as
150 percent more real estate for brands to tell their story well as other beverage segments, shrink sleeves are being
or communicate regulatory information. Pressure- used as an economical alternative to pre-printed cans.
>>

By combining bottle shape, color and a sensitive labels are usually easier to render and the The sleeves offer volume and versioning versatility.”
360-degree canvas, shrink and stretch sleeves application is simpler compared to shrink sleeve. INX International’s Hill adds that he’s seen
help beverages differentiate themselves on the
shelf, Fort Dearborn Co.’s Gwen Chapdelaine Film used for pressure-sensitive labels are typically usage of shrink and stretch sleeves within dairy
says. (Image courtesy of QKC LLC) polypropylene and are a relatively lower cost than and non-dairy alternative drinks as well as juices.

30 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By Jessica Jacobsen

“There seems to be more use in the and how the label will distort is essential reproduce with precision. the best film solution. Our internal lab
convenience sizes,” he says. in building the graphic. Hammer “Lastly, film selection to match the will confirm film selections and shrink
Beyond beverage categories, Packaging’s pre-press team works one- container is critical,” Flynn continues. recipes before testing at a customer
suppliers also are taking notice of on-one with our customers to help build “Hammer has a dedicated technical site.”
the size of the companies and brands the files and distort the graphics so they engineering group to help determine continued on page 32
employing shrink and stretch labels.
“It is the perfect technology to
infuse new life into an established
brand, as well as the ideal platform
for differentiating new products from
‘also-rans’ in the category,” PDC’s
Konstantin says.
Sleeve Seal’s Slarks also notes that
established and emerging brands are
using shrink and stretch labels, but in
different capacities. “Established brands
are expanding the use of shrink labels
in their facilities and buying new, faster
applicators while the emerging brands
are looking to co-packer’s equipment to
apply shrink labels until they have their
own production,” he says.
“The benefits of shrink labels
continue to be of value to both
established and emerging brands,”
Slarks continues. “In fact, the
established brands set the bar for good-
looking products and I think that the
emerging brands feel some sense of
having to utilize shrink labels to keep
up with the Joneses.”
Although more brand owners in
the beverage market are opting for
shrink and stretch sleeves for their
labeling needs, suppliers emphasize
the importance of doing one’s due
diligence when utilizing them.
“It is critical to get a clear
understanding on the substrate on
which the label is printed,” PDC’s
Konstantin says. “Each film, and it can
vary by vendor, has a unique ‘shrink
curve,’ which must be maintained to
get consistent results over time. Buying
the same label ‘type’ from a different
converter isn’t enough. The base film
has specific properties that need to be
understood and monitored.
“In regards to equipment, total cost
of ownership, including cutting blade
life, need to be taken into account,” he
continues. “Certain machines can go
months between blade changes, while
others last only a few days.”
Hammer’s Flynn notes that beverage-
makers must take into account
application equipment, container shape
and film type when opting for shrink- or
stretch-sleeve label materials.
“Having the right application
equipment is essential to ensuring
that shrink sleeves fit nicely on the
container and that the graphics display
as intended,” she explains. “Also,
understanding your container shape

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 31


Packaging
continued from page 31
Because of the extra steps involved with shrink- and says. “Hammer Packaging is committed to finding
stretch-sleeve labels, Fort Dearborn’s Chapdelaine and improving sustainable shrink-sleeve solutions
encourages its customers to involve the label supplier at that reduce packaging’s carbon footprint without
the onset when considering these materials. compromising quality and the functional integrity
“We encourage our customers to get us involved of the label. Working closely with our film suppliers,
upfront on a project to ensure success,” she says. “With we’ve made some great progress in this area and look
shrink sleeves especially, it’s critical to choose the forward to the future of sustainable packaging.”
right material for the container and to take this into Fort Dearborn’s Chapdelaine expects that
consideration during the container selection process. sustainability will be part of the future for shrink and
Shrink-sleeve labels also often need to include distortion stretch sleeves as suppliers continue to downgauge
of the graphics in order for the printed product to appear materials and interest in eco-friendly materials continues
correctly once shrunk onto the container.” to grow. “Fort Dearborn offers thin gauge film label
options as well as floatable films that meet APR
A GREEN MOVEMENT recyclable guidelines for PET containers,” she says.
The marketing value that shrink and stretch labels can Sleeve Seal’s Slarks adds that downguaging will
provide has been recognized by many in the packaging open up shrink and stretch sleeves to more beverage-
industry. However, some have raised concerns about makers. “Lightweighting is a trend furthering the cost
the environmental impact that the labeling materials per impression benefits of shrink labels and will continue
could have compared with other options. To address to expand in the market as other labeler manufacturers
these concerns, suppliers are searching for the right develop technologies to apply thin films at speed,” he says.
sustainability solution. No matter what the draw is, many suppliers are in
“Sustainability is a driving force in the development agreement that the future looks bright for the shrink-
of new material types and gauges,” PDC’s Konstantin and stretch-sleeve label market.
says. “Shrink tunnels need to be precise enough to “I think we will continue to see growth,” INX
compensate for lightweight, empty containers that can International’s Hill says. “Smaller brand products
deform if excessive heat is applied. Stretch labels have are seeing some advantages of printing capabilities
the added benefit of not requiring heat at all.” compared to other types of labels because of the
Hammer’s Flynn details the efforts that the label premium graphics and 360-degree coverage. I think we
supplier is doing to address sustainability for its will see more of our customer base get involved in the
customers. market in the coming years because it is easy to tailor
>>

Hammer Packaging utilizes a web offset press


“We’re seeing more options for recyclability brands based on region, culture, unique geographic
for most of its high-volume shrink-sleeve products,
Kimberly Flynn says. (Image courtesy of Hammer emerging from our suppliers, like de-seaming flavors and container shapes and sizes. We will see
Packaging) solutions, floatable films and recyclable films,” she this market grow.” BI

PACKAGING NEWS
NOT YOUR TYPICAL JUICE
For juice-loving customers, 7-Eleven is back
with new varieties of its 7-Select GO!Smart
organic cold-pressed juice, but this time,
they are available in 100 percent single
juice varieties. The new 7-Select GO!Smart
100 percent fruit juices feature unusual
varieties that aren’t typically found in every
grocery and convenience store, the company
CONSOLIDATED BRANDING says. The lineup is available in the following
Copper Fox Distillery launched new branding and packaging for the distillery’s three varieties: Pomegranate, which contains
existing products and new limited-edition releases. “The new packaging 2.5 pomegranates in each bottle and is cold-pressed, organic and only sourced
and label design better organizes our current product portfolio, better from pink pomegranates; Melon, a honeydew melon variety that is a good source
communicates our rich brand story at the shelf, and helps cut down on of vitamins A, B and C; and Blackberry, which contains the juice of 165 Dewberry
confusion as it didn’t seem that people understood our Copper Fox Rye and blackberries in each bottle. “Today’s juice customers continue to look for more
Wasmund’s Single Malt were from the same distillery,” said Rick Wasmund, premium options,” said Dion Miliaresis, senior product development manager
founder and master distiller at Copper Fox Distillery, in statement. Current for private brand beverages for 7-Eleven, in a statement. “Each of the three new
fans familiar with Copper Fox products no longer will see Wasmund’s on the juices will be sourced from a single organic fruit — pomegranate, blackberry or
Original Single Malt Whisky label. “Although the label has changed, our melon. Pomegranate juice, specifically, has seen significant growth as a premium
‘original’ spirits are the same,” Wasmund added. “This consolidation under juice in the U.S. because of its high levels of antioxidants and other nutrients.
the Copper Fox brand reflects our respect for the history and culture of whisky, Both blackberry and melon juices are great-tasting and found at very few other
our commitment to malting our own locally grown barley, and our passion retailers. They’re a great addition for our customers and their growing need for
for innovation.” The same branding has been applied to the craft distillery’s healthier options.” The current 7-Select GO!Smart line of organic cold-pressed
newest offering: Copper Fox SASSY Rye, a single malt distilled with 100 juices are fruit and vegetable blends. Within two months of the 2018 launch,
percent Virginia rye that is floor malted and smoked with Virginia sassafras sales of three of the original four varieties are in the Top 10 of juices sold in
wood then double pot stilled, aged with a progressive series of new and used the 20-ounce or smaller juice category, according to the company. The three
Applewood and oak chips inside used bourbon barrels, and finished in a additional single fruit juice varieties are sold in 11.2-ounce glass bottles with a
second used bourbon barrel, the company says. suggested retail price of $2.99.

32 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


Beverage

Making sense of
all the possibilities
Consumer confidence IN “THE IMPOSSIBLE DREAM” (“THE QUEST,”) THE SIGNATURE TUNE IN THE
1965 musical “Man of LaMancha,” the song extols the “mad” knight Don Quixote “to
in cognitive health,
dream the impossible dream, to fight the unbeatable foe, to bear with unbearable
energy ingredients sorrow, to run where the brave dare not go” in his quest to “reach the unreachable
drive usage upswing star.” When it comes to beverage fortification, beverage-makers have embarked on
their own quest to provide consumers with functional cognitive performance and
energy, and ingredient suppliers are ensuring brand owners have more options
that will support these dual benef its.
Several trends are influencing the use of cognitive an area which can potentially achieve both cognitive
health and energy ingredients within beverages, and energy benefits.”
experts note. These include increased awareness of
overall wellness due to the Internet and social media, DUAL BENEFITS
improved research and proof of efficacy of functional Energy ingredients and cognitive health ingredients
ingredients, and the rise of nootropics to enhance such as caffeine are recognizable attributes to increase
cognition and memory and to facilitate learning. alertness, says Brian Zapp, creative director for Applied
“The 2018 Gallup Cognitive Health Survey reported Food Sciences, Austin, Texas.
that consumers’ confidence level in food and beverages “Caffeine is one of the most common stimulants
formulated for brain health has increased from consumed worldwide and can originate from both
37 percent (2014) to 41 percent (2018),” says Elyse plant-based and synthetic sources,” Zapp explains.
Lovett, senior marketing manager at New York-based “Plant-derived foods such as coffee beans, tea leaves,
Kyowa Hakko USA. “It also reported that four out of guarana, cocoa beans, kola nuts … and holly species of
five adults are interested in trying a functional food or guayusa or yerba mate all contain caffeine.”
beverage that has a cognitive health benefit.” Although the average U.S. consumer will drink
Energy ingredients and cognitive ingredients are around 240 mg of caffeine per day, most don’t realize
not that far apart on the functionality spectrum, that not all caffeine sources are created equal in terms of
says Barbara A. Davis, vice president of medical and body response and overall effect, Zapp says.
scientific affairs at PTL Health Solutions, Morristown, “Caffeine will interact with neurotransmitters in the
N.J. “In a sense, many or even most of these brain and has been shown to have both therapeutic and
ingredients can be said to provide both functions,” she harmful effects,” Zapp explains. Consuming traditional
says. “Consider sports nutrition, where an ingredient forms of caffeine might provoke an increase in
that provides focus can help lead to a more intense epinephrine, the “fight or flight” hormone, which could
workout. Caffeine is both an energy and cognitive occur after having too many cups of coffee, he adds.
ingredient. Zapp notes that new innovation and discovery has
“ … Energy ingredients (such as caffeine) have long driven more research into the natural, plant-based
been a fixture in formulations for weight management guayusa, which is grown on holly trees in the Amazon
and sports nutrition,” she continues. “In the last 24 Rainforest. Conducted by Applied Food Sciences, a
months, we have seen cognitive ingredients begin to 2016 base study comparing guayusa leaf extract with
work their way into these formulations.” coffee and a control caffeine found that guayusa leaf
Improving the workout experience by enhancing extract stimulated a significantly lower increase in
focus and mood is the concept behind the inclusion of epinephrine compared with the control or coffee.
energy- and memory-boosting ingredients, Davis adds. As an ingredient, guayusa is estimated to be
In addition to caffeine, Matthew Phillips, vice growing at a compound annual growth rate (CAGR) of
president of business development at Irvine, Calif.- 14 percent through 2022, with 69 percent coming to
based Bioriginal, notes that nootropic ingredients North America and being used within beverages, Zapp
like coconut oil and palm kernel oil medium-chain says, citing a 2018 report from England-based Technavio.
triglycerides (MCTs) are more commonly being According to Chicago-based SPINS, natural energy
infused in ready-to-drink (RTD) coffees, teas and is growing 16.2 percent versus a 1.8 percent growth for
other beverage applications. other energy ingredients.
“Some of the science around MCTs supports the To capitalize on the natural energy movement,
>>

Studies comparing guayusa leaf extract to coffee ability to concentrate,” Phillips says. “We are seeing Applied Food Sciences offers AMATEA organic
and a control caffeine found that the leaf extract
stimulated a lower increase in the “fight or flight”
and developing more MCT emulsion and powder guayusa extract for the busy, modern workforce and
hormone, Applied Food Sciences’ Brian Zapp says. products to capture the growing trend about the even gamers needing a “premium cognitively uplifting
(Image courtesy of Applied Food Sciences) benefits of MCTs, specifically coconut MCTs. This is energy experience,” Zapp says.

34 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By Barbara Harfmann

Building on results from its 2016 study, the improve energy, McHugh says.
company is actively exploring the relationships Mountain Dew Amp Game Fuel, a brand of
between key biomarkers and guayusa leaf extract to Purchase, N.Y.-based PepsiCo Inc., is set to launch
help substantiate cognitive health claims. “We want nationally this year, but pro gamers got a sneak peak
brands to have the resources that can easily inform of the beverage during the Call of Duty World League
the consumer about how products using guayusa leaf competition in Las Vegas this past December.
extract will differ from their caffeine sources,” Zapp The sparkling beverage contains Suntheanine, an
explains. “We are looking forward to [sharing] these ingredient manufactured by Minneapolis-based Taiyo
results in the upcoming future.” International Inc., which has been shown to improve
Noting that caffeine can taste bitter, the company focus, attention and mental clarity, says Derek Timm,
offers soluble PurCal organic caffeine, which uses a technical sales director. “It also has a relaxing benefit
water extraction process to yield more than 95 percent that you can feel within 20 minutes after consuming,”
caffeine with a more neutral flavor profile, Zapp adds. he says. The ingredient also is GRAS, non-GMO, kosher
and gluten free, he adds.
THE BRAIN GAME To keep up with consumer demand, more ingredient
Second to heart disease, cognition issues are top of suppliers are including cognitive health ingredients
mind among U.S. adults. Citing data from the Natural as part of their portfolios. For example, Kyowa Hakko
Marketing Institute, Holly McHugh, marketing USA offers its scientifically proven Cognizn citicoline
associate for Niles, Ill.-based Imbibe, notes the that supports mental energy without the associated
importance of cognitive health has risen sharply, jitters of caffeine, Lovett says. The ingredient is stable,
growing from 61 percent in 2005 to 74 percent in 2017. soluble, tasteless, GRAS and works well in beverage
“Cognitive health beverages are an emerging applications, she adds.
category that has a lot of potential,” McHugh says. “In City of Industry, Calif.-based AIDP Inc. offers its
addition to giving consumers a boost to help with day- flagship Magtein, a proprietary magnesium l-threonate

>>
Available in six flavors, Kicktail Energy Mixers
to-day productivity, they’re suggested to help maintain that not only slows down the cognitive effects of aging, are premium, all-natural cocktail mixers with
“energy you can feel” and just the right amount
or improve cognitive function over time.” but actually reverses the process, says Lauren Clardy,
of caffeine, taurine and B-group vitamins, the
In the market, Synapse and FocusAid are among the vice president of branded ingredients. company says. (Image courtesy of Kicktail Energy
products that might aid with cognitive function and “Magnesium is an essential cofactor for over 300 Mixers)
continued on page 36

7KH QH[W JHQHUDWLRQ


RI FDIIHLQH"
&21680(56 :$17 0(17$/ 67,08/$7,21 $1' 1227523,&6 $5( 21 7+( 5,6( ,W
V WLPH WR
$V EUDQGV DUH HDJHUO\ VHHNLQJ LQJUHGLHQW SDLULQJV WR PHHW WKLV GHPDQG $SSOLHG
)RRG 6FLHQFHV $)6 SUHVHQWV D SDWHQWHG JXD\XVD H[WUDFW WKDW FRXOG EH WKH DQVZHU
EULQJ JXD\XVD
IRU WKH QHZ HYROXWLRQ RI FDIIHLQDWHG SURGXFWV RQ WKH PDUNHW WR PDUNHW
*XD\XVD LV DQ $PD]RQLDQ KROO\ VSHFLHV DQG 7KH SUHPLHU H[DPSOH LV $0$7($p RUJDQLF
FRXVLQ WR <HUED 0DW« $ FULWLFDO GLIIHUHQFH JXD\XVD OHDI H[WUDFW E\ $)6 ZKLFK KDV EHHQ
EHWZHHQ WKH WZR LV WKDW JXD\XVD KDV VLJQLˋFDQWO\ SUHOLPLQDULO\ VKRZQ WR LQFUHDVH VHURWRQLQ DQG
PRUH FDIIHLQH DQG SRO\SKHQRO DQWLR[LGDQWV E\ GRSDPLQH OHYHOV ERWK RI ZKLFK LPSDFW PRRG DQG
ZHLJKW PDNLQJ LW D IDVFLQDWLQJ LQJUHGLHQW IRU WKH PRWLYDWLRQ ,Q DGGLWLRQ WR FRQWDLQLQJ FDIIHLQH
QRRWURSLF HQHUJ\ FDWHJRU\ $0$7($p KDV SUHOLPLQDULO\ GHPRQVWUDWHG WKDW LW
:K\ PLJKW JXD\XVD EH EHWWHU WKDQ RWKHU UHJXODWHV WKH NQRZQ DGUHQDO UHVSRQVH
FDIIHLQH VRXUFHV" :KLOH FDIIHLQH DORQH KDV EHHQ HSLQHSKULQH IRU D PRUH PLQGIXO DQG EDODQFHG
KLVWRULFDOO\ VKRZQ WR KHOS KHLJKWHQ DOHUWQHVV DQG HQHUJ\ H[SHULHQFH
LQFUHDVHV PHQWDO RU SK\VLFDO HQHUJ\ LW GRHV OLWWOH
WR VXSSRUW PRRG DQG FDQ KDYH OHVV GHVLUDEOH VLGH ),1',1* *8$<86$ /($) (;75$&7
HIIHFWV OLNH QHUYRXVQHVV DQ[LHW\ RU UHVWOHVVQHVV DSSOLHGIRRGVFRP$0$7($
WKDQNV LQ SDUW WR WKH ERG\
V DGUHQDO UHVSRQVH )RU   
QRRWURSLFV JXD\XVD OHDI H[WUDFW LV GLIIHUHQW IURP VDOHV# DSSOLHGIRRGV FRP
RWKHU FDIIHLQH VRXUFHV

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 35


Beverage
continued from page 35
systems that regulate biochemical be able to actually reach the brain. In a randomized, double-blind, aged and older adults, with a 10 percent
reactions in the body, including brain … Magtein is the only magnesium placebo-controlled trial, Magtein improvement in Trail Making Test Part
and nervous system function,” Clardy compound that has been shown to supplementation for 12 weeks resulted B (TMT-B), a clinical assessment that
explains. “However, in order to be effectively raise the brain’s magnesium in “significant improvements” in evaluates attention, motor speed and
effective for brain health, it has to levels.” memory, stress and anxiety in middle- impulsivity, Clardy adds.

MEASURING PERFORMANCE
Engaged in both the cognitive health
and energy arena, PLT offers a range
of science-backed ingredients. These
include the patented Zembrin Sceletium
tortuosum and Synapsa Natural
Memory Support, which represent two
distinct needs in the cognitive health
market, Davis says.
Marketed to nutraceutical and
functional food and beverage-makers,
Zembrin experientially supports
calmness, enhanced mood and
improved cognitive function. PLT
Health Solutions, in partnership with
HG&H Pharmaceuticals Pty. Ltd.,
studied the effects of acute short-term
supplementation using Magnetic
Resonance Imaging and Zembrin to
study the “threat circuity” of the human

WHEY
brain on 16 healthy college students. “[It]
showed that 25 mg of Zembrin reduced
anxiety-related activity of the amygdala
and its associated anxiety circuity within

PROTEIN
two hours of administration.”
In 2017, PLT released a line of zümXR
targeted release caffeine ingredients in
three versions: extended release, delayed
release and liquid stable extended.
“This technology will allow beverage
formulators the ability to design custom
Say “Hi” to protein for busy lives energy profiles into their products,
delivering predictable performance for
the consumer,” Davis says.
Food is fuel for people constantly on the go. Your customers don’t want to sacrifice For instance, the zümXR extended
release caffeine is designed to provide
healthy choices for convenience. Offer them foods and beverages fortified with whey
long-term energy without the
protein for lasting energy. Our applications experts will work with you to create unpleasant effects associated with many
caffeine products, she adds.
products your consumers want.
To help meet the real world needs
of consumers interested in peak
Hilmar Ingredients whey protein helps: performance, mental clarity, health and
wellness and quality of life, the release
1. Curb hunger of new products for cognitive health
and energy support will continue to
2. Maintain lean muscle require investment and creativity.
3. Enhance exercise recovery In fact, the cognitive health market
experienced sales of about $1.4 billion
in 2015, Davis says.
Developing trust and credibility with
consumers and offering science-backed
products will be key to future success.
© 2019 HILMAR INGREDIENTS

“The investment will involve creating


strong, high quality, transparent
ingredients and solid science to support
them,” PLT’s Davis says. “… There is
Whey Protein Lactose  Milk Powder an educational opportunity and need
to power brain function and physical
Learn more at hilmaringredients.com or give us a call: 209.667.6076 prowess.” BI

36 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


Think.
Focus.
Citicoline.
Add brain health support to your next functional beverage
Cognizin® Citicoline delivers on the brain energy needs of modern
consumers. Whether they are going from work to workout – give them
the re-energizing benefits of clinically proven Cognizin.

Learn more at Kyowa-USA.com

* These statements have not been evaluated by the Food and Drug Administration.
This product is not intended to diagnose, treat, cure or prevent any disease.

Cognizin® is a registered trademark of KYOWA HAKKO BIO CO., LTD.


Copyright © 2019 KYOWA HAKKO U.S.A., INC. All Rights Reserved.

Pure | Patented | Water-Soluble | Stable | GRAS | Non-GMO | Vegetarian | Kosher


Beverage
R&D NEWS CREATOR’S BRIEFS
Commerce, Calif.-based Gold Coast Ingredients’ world’s largest providers of citrus oils and A SWEET, LOWER-CALORIE TASTE
(GCI) new S.M.A.R.T. Center has opened. ingredients, it says. FCC’s citrus expertize, Ingredion Inc. in partnership with Itami City, Japan-
Located in Santa Fe Springs, Calif., Gold together with ADM’s combined leadership in based Matsutani Chemical Industry Co. Ltd, introduced
Coast has positioned sales, marketing, research and development, will allow ADM to ASTRAEA Allulose. The on-trend sweetener is 70 percent
applications, research and technology under strategically accelerate and expand its diverse as sweet as sugar and helps manufacturers reduce
one roof in order to maximize its creative offerings in natural flavors and high-value sucrose in their recipes and develop reduced-calorie food
efforts, it says. With more than 10 new products and solutions to a wider customer and beverages to meet growing consumer demand, the
laboratories, GCI’s S.M.A.R.T. Center focuses base, it adds. companies say. Matsutani will manufacture the ingredient
on developing custom flavors and colors, in Mexico and market it across the Americas. Available in
as well as extracts, flavor modifiers, and Gelymar, Providencia, Santiago, Chile, 2019, ASTRAEA Allulose will enable food and beverage
ingredient enhancers, it adds. appointed AIDP Inc., City of Industry, Calif., as manufacturers to reduce calories from sucrose and other
its exclusive North American distributor for caloric sweeteners in a wide range of products, including
TIC Gums, White Marsh, Md., announced its carrageenan product portfolio. Gelymar’s beverages, dairy, bakery and confectionery items, the
that six of its pectin products now carry the carrageenan products are sustainably sourced company says. “Reducing sucrose is an emerging global
Non-GMO Project Verified seal. According to from cold-water seaweed, and are vegan and trend and can be a challenge for manufacturers, who are
the Non-GMO Project website, “the Non- gluten free, it says. The ingredient is used looking to match the sweet taste of sugar while achieving
GMO Project Verified seal gives shoppers in food manufacturing to improve texture, the same functional benefits in their products,” said
the assurance that a product has completed stability, mouthfeel, suspension, smoothness, Tony DeLio, senior vice president of corporate strategy
a comprehensive third-party verification thickening and gelling. and chief innovation officer at Ingredion, in a statement.
for compliance with the Non-GMO Project “By combining our manufacturing network and global
Standard.” New York-based International Flavors & Fragrances footprint alongside Matsutani’s pioneering work in rare
Inc. (IFF) reports that it has established an sugars, we will bring exciting opportunities grounded in
Chicago-based Archer Daniels Midland Company industry-exclusive collaboration with Aryballe, innovation to meet the needs of the evolving food industry
(ADM) announced that it has reached an a pioneer in digital olfaction technology based ahead of sugar labeling changes.” The partnership also
agreement to acquire Florida Chemical Co. (FCC), in Grenoble, France, to refine and further supports Ingredion’s goal to grow its specialties business
a division of Flotek Industries. Based in Winter develop the flavor and fragrance capabilities to $2 billion in annual sales by 2022.
Haven, Fla., FCC specializes in citrus-based and applications of Aryballe’s technology in ■ Ingredion Inc., 5 Westbrook Corporate Center, Westchester, Ill.
flavors and fragrances, and is one of the portable, universal odor detection sensors. 60154; 800/713-0208; ingredion.com.

What’s Possible with


Coconut Water
Coconut water adds nutritional
benefits, while providing 100% juice
blends with less sugar than juice
blends without coconut water.

Used in 100% Juice Blends lSSTranslucent Color lS Neutral Flavor Sl Minimal Texture l No Added Sugars

To see our full line of products, visit ititropicals.com today.

38 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


ENERGY
TA R G E T E D R E L E A S E C A F F E I N E

GET CONTROL
OF YOUR ENERGY
WITH CLEAN, GREEN
COFFEE BEAN CAFFEINE
zümXR® Targeted Release Caffeine Advantages:
• Green Coffee Bean and Anhydrous available
• Tightly controlled GRAS coating materials
• Specified payloads
• Pharma modeling techniques employed
• Tightly controlled dissolution specs
• High physical quality ingredients
• Predictable performance
• Ability to design your energy profile

Pharmaceutical modeling technology allows you


to design and deliver a targeted energy profile
Developed by leading biochemists, zümXR Targeted Release Caffeine represents
new benchmarks in engineered release for supplements, functional foods and
energy drinks. Studies have shown that zümXR is a major leap forward from
conventional caffeine coating technologies. With the zümXR approach, we can
help you design an energy profile to target your customer and application –
and deliver an experience that will keep them coming back for more.
With our new Green Coffee Bean source of caffeine, you’ll have an additional
story that will resonate with consumers who prefer nature-based ingredients.

VISIT US AT EXPO WEST • BOOTH 3775


The caffeine is extracted via a supercritical CO2 process – without chemical
solvents. This makes zümXR one of the cleanest forms of caffeine you’ll find.

Ask Us about our New PK Study

THESE STATEMENTS HAVE NOT BEEN EVALUATED BY THE FOOD AND DRUG ADMINISTRATION.
THIS PRODUCT IS NOT INTENDED TO DIAGNOSE, TREAT, CURE, OR PREVENT ANY DISEASE.

Contact PLT Health Solutions for samples and more information.


+1.844.PLTHEALTH • www.PLTHealth.com
Ingredient Spotlight

A fruitful influence
Domestic, exotic THE “HEALTHY HALO” MANTRA CERTAINLY HAS GAINED TRACTION WITHIN
the beverage marketplace in recent years. As consumers continue to look for
fruits provide
functional beverages that deliver health benefits and a clean label, they also seek
health benefits out ingredients that deliver on taste. Beverage-makers are recognizing these
trends and incorporating domestic and exotic fruits in their formulations to give
consumers healthy benefits along with great taste.
Familiar fruits like blueberries, pomegranates Additionally, the rise of fermented and vinegar-base
and grapes commonly are seen on store shelves, beverages like kombucha can utilize different domestic
while exotic fruits like dragon fruit, passionfruit and and exotic fruits. “Sour flavors are on trend right now,
citrus varietals are becoming more popular beverage as demonstrated by the rise of kombucha and vinegar
ingredients. drinks,” May explains. “Key to growth is to achieve
Fruit juices have a very well-known health halo a balance between creating something that delivers
and consumers continuously look to fruit juices for a point of difference, but is also palatable enough to
health benefits like immunity, vitamin content and sustain repeat purchases.
overall well-being, notes Kristen Farr, marketing and “Harnessing fruit juices in these formulations can be
innovation manager at iTi Tropicals, Lawrenceville, N.J. an effective way to hit that sweet spot,” he continues.
“The beverage category is getting more and more “To graduate beyond the novelty factor and maintain
complex with the super-premium juice (SPJ) category their popularity in the long term, kombucha and
continuing to grow and new players coming into vinegar drinks must deliver on taste, and the addition
the space,” says Adam Cooper, vice president of of fruit juices to a formulation can help achieve this.”
marketing at Los Angeles-based The Wonderful Co.
“Consumers are looking to try beverages that deliver THE SWEET SPOT
functional benefits but are still looking for clean labels A wide array of domestic and exotic fruits constantly
and great taste.” are being used in the beverage market. Domestically,
Cooper touts the health and flavor benefits of utilizing blueberries in beverages remains quite
the company’s 100 percent pomegranate juice. The popular. “Blueberries are making the scene in a realm
pomegranate delivers on health factors because of its of juices, teas, sports drinks, smoothies and other
antioxidant content, without sacrificing flavor, he says. beverages that make the claim for antioxidants,” the
Tom Payne, industry consultant to the U.S. Highbush Highbush Council’s Payne says.
Blueberry Council, San Mateo, Calif., also points to “Blueberries help ease consumers into an
the healthy draw of consuming fruit beverages and adventurous flavor profile because they work well
blueberry beverages in particular. “The most important in flavor combinations with spices, botanicals, floral,
and influential trend is undoubtedly the current trend citrus and herbaceous; they complement and enhance
for healthy eating, which is [one] reason that blueberry as well as balance flavors,” he adds.
beverage development has been enjoying a particular Although domestic fruits can be a way to “play
surge in popularity,” he says. it safe,” Welch’s May warns that it can be difficult
“Blueberries and fruit in general have a positive image for new fruits to enter the market as it can be quite
among consumers who consider fruit an almost-guiltless static in terms of trends. “We're not seeing [much]
‘right choice,’” he continues. “With their fresh burst in else break into the space besides these ‘big’ four —
the mouth flavor and healthy profile, blueberries give orange, apple, grape and cranberry,” he says.
products lush taste, broad appeal and clean labels.” On the other hand, the exotic fruit market is
Beverage-makers are utilizing diverse fruits to gaining some new players. “In the exotic juices
differentiate their products on store shelves, experts category, we’ve observed new launches that include
note. “Increasingly, the provenance of domestic fruit dragon fruit (pitaya), yuzu and varietal citrus,”
is adding a new dimension to beverages, with varietal May explains. “These niche fruits offer a way of
differentiation now a popular strategy [to] stand out,” creating excitement through novel blends and limited
says Greg May, business development manager at editions. But many exotic fruits arrive with a bang
Concord, Mass.-based Welch’s Global Ingredients and then disappear from the shelves, so it’s hard to
Group. “Blood oranges, Meyer lemons and of course, say which of them we will still be talking about in
Concord and Niagara grapes can all be seen on-shelf in five years’ time.”
the fruit beverage category.” iTi Tropical’s Farr also highlights the emergence of
May explains how the origin of fruit ingredients dragon fruit. “Dragon fruit is showing momentum,
>>

Blueberries are making the scene in a wide variety resonates with consumers. “This level of extra detail not only does it offer an exciting name from a
of juices, teas, sports drinks, smoothies and other about the origin of the beverage appeals in particular marketing standpoint, its characteristic natural neon
beverages that make the claim for antioxidants, Tom
Payne says. (Image courtesy of the U.S. Highbush to conscientious shoppers with sufficient disposable pink color is hard to beat,” she says.
Blueberry Council) income to trade up from commodity options,” he says. Additionally, increased awareness about

40 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By Taylor Karg

passionfruit is helping the exotic fruit be incorporated domestic, as they also can be imported, iTi Tropical’s
into more beverage formulations. “Passionfruit, while Farr notes. However, issues beyond price also can
continuing to gain popularity, is still making its way emerge when working with exotic fruits. “Overall
as the main flavor in beverages,” Farr explains. “It cost is one aspect,” she says. “… But quality, safety
has a sweet yet tart flavor that pairs nicely with more and making a product consumers will buy and love
familiar fruits like apple and grape.” are the most important.
Farr also points to the persistent popularity “Using tropical fruit juices in combination with
of pineapple and mango and their ability to commoditized fruits, allow for products with added
complement other exotic flavors. “Well-established value and benefits,” she continues.
tropical flavors like pineapple and mango are often Welch’s May also notes the challenges of using exotic
used as the main flavor while newcomers like guava fruits within beverages. “With exotic fruits, creating
and passionfruit are often used as complementary to new and interesting flavor concepts is easy, but the
more recognizable flavors,” she says. reality isn’t always as straightforward,” he says. “For
Historically, pomegranate has been viewed as one thing, obtaining a secure, reliable supply of new
an exotic fruit and continues to be one of the most raw materials takes time to develop, and there also has
popular for consumers looking to experiment with to be a market for that fruit.”
new flavors, The Wonderful Co.’s Cooper notes. The healthy-halo trend in what people are consuming
Pomegranate juice resonates well with the health- will continue to drive the fruit juice category, experts
conscious consumer as it contains potential benefits say. “In the future, consumers will continue to demand
including improved sports performance, memory transparency across the supply chains,” May says.
and cognition, gut health and more, he adds. “Reputable, high-quality suppliers of fruit ingredients
are vital to juice beverage manufacturers’ ability to
RELIABLE SOURCES deliver this expectation.”
Before formulating with domestic and exotic iTi Tropical’s Farr notes how the demand for new and
fruits, beverage-makers should be aware of several unique flavor combinations also will drive the category.
associated challenges such as cost and sourcing. “Caribbean flavors are becoming popular and more

>>
The pomegranate delivers on numerous health
Some domestic fruits are expensive, and commodities mainstream like coconut, guava, mango, passionfruit factors because of its antioxidant content,
like orange, apple, grape and pear aren’t necessarily and papaya,” she says. BI without sacrificing flavor, Adam Cooper says.
(Image courtesy of The Wonderful Co.)

We’re Smarter. We’re Bigger. We’re Better.


Can your current
CERTIFICATIONS Copacker match our
NSF GMP Certified facility capabilities for all
SQF Level III
Organic & Kosher Certified your Ready-to-Drink
Beverages &
Liquid Dietary
FACILITIES Supplements needs?
State of the
art 150,000 SF plant Organic & Kosher certified s -ORE
CAPACITY s -ORE PACKAGING options
Multiple filling rooms REGISTERED FILM  CARTON PACKAGING
s .EW REGISTERED FILM CAPABILITY
s 4RAY SUPPORTED  NON SUPPORTED
CAPABILITIES s .EW 31& ,EVEL ))) s .EW EXPANDED
FACILITY NOW  SF s "UILT TO
8 oz to 32 oz
filling capability C'-0 3PECIFICATIONS s &ILLING ROOMS
INDIVIDUALLY TEMPERATURE 
Hot fill/PET HUMIDITY CONTROLLED

Just contact us for more info.


(352) 247-8004
alisa@southeast-bottling.com
www.southeast-bottling.com
SOUTHEAST
bottling & beverage

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 41


Distribution By Jeff Cioletti

The road to the future


Green alternatives WHEN IT COMES TO EXTREMELY LOW OR ZERO EMISSIONS, ELECTRIC VEHICLES

becoming have been dominating the conversation, but their deployment in the beverage
delivery space remains relatively low. As all-electric technology steadily expands
increasingly popular in the market during the next several years, continuous opportunities also will
emerge for other green fuel types.
The market already has seen a number of operations see the urban pick-up and delivery application that
integrate natural gas into their fleets, for instance, but beverage companies operate in being one of the first
we likely can expect propane to become a bigger part and most viable applications.
of the conversation — especially if recent news from Smith also expects the distribution market to be
Roush CleanTech is any indication. quite receptive to electric technology, as it historically
Roush, which designs, engineers, manufactures and has been receptive toward alternative powertrain
installs propane fuel systems, has developed an ultra- options. In recent years, the adoption of liquid natural
low nitrogen oxide (NOx) engine that can operate on gas (LNG) and compressed natural gas (CNG) has
non-fossil-fuel renewable propane — running on been a prime example of that. “Many companies in
100 percent renewable raw materials such as waste, that market have been very interested in testing and
residue and sustainably produced vegetable oils. evaluating the electric powertrains that Peterbilt is
Renewable propane is an evolution from petroleum- developing,” he says.
based propane autogas, which is itself, a viable option Roush’s Mouw highlights that there’s a bright future
for fleets looking for cleaner fuel options. During the for electric vehicle technology, but also asserts that
past three or four years, the propane conversation has renewable propane will have a seat at that table as well
shifted away from light-duty to medium-duty, all the — particularly as states follow California’s lead and
way up to Class 7. pursue near-zero emissions policies.
“Based on customer discussions, they’re saying, ‘we’re The Ford 6.8L V10 3V engine is equipped with a
done with diesel,’” says Todd Mouw, president of Roush Roush CleanTech fuel system to 0.02 grams per brake
CleanTech. “Diesel is not the sweet spot for them.” horsepower-hour, which, according to Roush, is
Fleets might be moving away from diesel, but 90 percent cleaner than the current EPA standard.
the fuel isn’t going away any time soon, experts say. “In California’s mind, that’s [electric vehicle] only,”
Recent research from business information provider Mouw says. “But once you get to 0.02, you’re in that
IHS Markit found that 60 percent of new medium- and category. There’s been a heavy investment in that
heavy-duty commercial vehicles sold in the United innovation to keep propane on par and in the same
States will be fueled by diesel, including diesel hybrids, conversation with electric vehicles.”
in 2040, down from 80 percent today. In terms of fueling infrastructure, propane is a
Diesel is expected to maintain its dominance during “shovel-ready” solution, Mouw explains. “Roush
the next two decades, due mainly to increases in fuel customers have said they needed another solution that
economy that will keep it competitive with alternative was ‘shovel-ready,’” he says. “Propane plays very well
powertrains, IHS Markit’s “Reinventing the Truck” when you consider beverage fleet needs like lower
study says. But as alternative technologies advance, costs and lower emissions.”
they’ll continue to steadily grow, gradually cutting into The accessibility of propane’s infrastructure makes
diesel’s share. the fuel an attractive solution for many delivery fleets,
Among those is battery-electric vehicle technology, Mouw notes. “Most times, propane companies will
which IHS Markit projects will enjoy a work with beverage fleets — in exchange for a contract
15 percent compound annual growth rate in they’ll often put it in [tanks] for low to no cost,” he says.
the United States between now and 2040. This As for electric vehicles, the charging infrastructure
is especially true as adoption rates increase for is one of the biggest questions to be answered
medium-duty trucks, especially for Class 4 and when it comes to the widespread production and
5 trucks in urban delivery environments. deployment of the vehicles, Peterbilt’s Smith says. “The
Last month, Peterbilt unveiled its latest demonstration vehicles that Peterbilt is producing and
electric vehicle, the 220EV, joining its previously testing this year are going to private fleets that will have
announced Model 520EV and Model 579EV, charging stations installed at the facilities that will serve
which are all-electric offerings. as home bases for these trucks,” he says. “This is part of
The 220EV is Peterbilt’s first option in the the reason Peterbilt sees urban pick-up and delivery as
medium-duty space. However, the company one of the early adopters of electric vehicles.”
says the full extent of electric vehicles’ long- Whatever clean-and-green technology ultimately
term prospects remains to be seen. “There are ends up powering most of the vehicles on the road
still many things being evaluated to determine three or so decades from now, the shift isn’t going to
the best business case for electric vehicles,” happen overnight. A great deal of experimentation and
The market recently has seen an increasing number of
>>

beverage fleets integrate natural gas into their operations. says Nicholas Smith, spokesperson for Peterbilt a healthy dose of “wait-and-see” will need to happen in
(Image courtesy of Roush CleanTech /Jeff Cioletti) parent PACCAR. “That being said, Peterbilt does the meantime. BI

42 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


MA R C H
, 2 0 19
25-27 H 26-27 ER
C CENT
S MARDATE VENTION
P O
EX AS CON
EG
LAS V HOW 19
BS
#NC

AMERICA’S LARGEST
BAR EXPO& CONFERENCE!

REGISTER
TODAY AT EARLY USE PROMO CODE: BEVINDUSTRY
BIRD RATES! NCBSHOW.COM/REGISTER
SAVE $30 OFF ANY PASS
Warehouse By Barbara Harfmann

A heightened demand
Storage systems, IN THE 2018 MOVIE “MARY POPPINS RETURNS,” THE CATCHY NEW TUNE
“Nowhere to Go But Up” proclaims that “as you fly over town, it gets harder
ASRS address
to frown. And we’ll all hit the heights if we never look down.” To keep up with
space issues burgeoning stock, warehouse experts are “looking up” and strategizing storage
solutions that deal with decreased high-moving SKUs and the challenges of “long
tail” slow-moving products.
In addition to the proliferation of SKUs, the volumes aisles to access the loads,” Hassenfratz says.
being delivered to customers have drastically changed, While pallet sizes have remained unchanged in
says Darrell Dunham, president of Cirrus Tech Inc., the past 50 years, pallets are an important common
Kearney, Neb. “In most cases, you can’t just order 15 denominator between production, distribution and
of a slow-moving SKU at a time. You typically have to transportation, he adds.
order a full pallet,” Dunham explains. “If you only need Warehouse management systems (WMS) and the
15 of the product for the month, but you get a pallet of Internet of Things (IoT) continues to play a pivotal role
75, that pallet is now needing to be stored, in most cases in the functionality of beverage warehouse storage
very inefficiently from how much space it takes to store. systems, experts say.
You can’t stack anything on top of it, you need to store “Software is key to any storage, picking and order
it for five months and take it down and to replenish the fulfillment operation,” says Tom Steininger, market
pick location five to 10 times over the life of that pallet. development director at Grand Rapids, Mich.-based
“This is where an [automated storage retrieval system] Dematic Corp.
(ASRS) comes in really handy, especially if you can When it comes to storage technologies, Steininger
replenish your highest volume SKUs,” he continues. cites the following as integral to today’s storage needs:
“Consolidating these SKUs frees up 50 percent or more high-speed deep lane pallet storage systems, which
space in your existing warehouse, giving you the room provide more density and ability to support shipping,
to more efficiently ‘deal’ with the long tail. It’s a triple layer picking and case picking operations; storage of
win with the density of storage freeing up significant individual cases to support high-speed automated case
space, only touching your highest volume SKUs (60-80 picking; and storage of open top cases to support bottle
percent of your volume) once and you can now more picking either manually or robotically.
efficiently handle your slower moving items.” David Schwebel, vice president of business
Paul Laman, vice president of food and beverage development and market intelligence at Swisslog
at DMW&H, Fairfield, N.J., also notes the “long tail Logistics, Newport News, Va., highlights important
of SKUs,” which often result in much lower storage technology and software advancements that are
density. “Warehouses are regularly getting taller taking storage systems to the next level. These
and are being equipped with higher density storage include the following:
systems, such as ASRS, pushback racking and tall ■ The introduction of robotic picking and palletization
narrow aisle racking. solution sets.
“A decade ago, the high-volume SKUs were ■ Little-to-no pallet conveyor in forward picking areas
basically stored in bulk by stacking two to four pallets (manual and automated) supplied by long-distance
on the floor, [while] slower moving SKUs were stored traveling automated guided vehicles (AGVs) and
in standard storage racking,” he continues. “Today, autonomous mobile robots (AMRs).
many warehouses can get twice as many cases stored ■ Pallet shuttle technology improving the cubic density/
per square foot using the latest in storage strategy cases storage per cubic foot of ASRS operations.
optimization.”
GRAVITATIONAL PULL
OPTIMAL ORGANIZATION Although it is good for beer lovers, the increased variety
To keep up with product diversity, lightweight of craft beers can create challenges for distributors that
packaging and more, storage systems are broadening need to make room for heavy, full and partial kegs such
their appeal to include shelving and carton flow. as one-half and one-sixth kegs that weigh 165 pounds
Racking also is becoming more sophisticated, and 60 pounds, respectively, notes Brian C. Neuwirth,
according to Ron Hassenfratz, president and owner of president of UNEX Manufacturing, Lakewood, N.J.
Distribution Technologies, Plano, Texas. “Between space constraints, inefficiencies for pickers
“To address these added items within the same cubic and safety issues, the problem in a beer distributor’s
feet of storage space, distributors are adding fixtures cooler area is anything but pint-sized,” Neuwirth says.
such as shelving and carton flow to store and locate As a solution, UNEX offers the UNEX Keg-flow
>>

To keep up with product diversity and lightweight these added SKUs,” he says. system, which has been designed using Span-Track
packaging, many storage systems are using Hassenfratz details how the racking system is used rails and side guards to hold as many as nine kegs
sophisticated racking, shelving and carton flow,
Distribution Technologies’ Ron Hassenfratz says. to organize products in a given space. “The majority of deep. The gravity flow system is powered by natural
(Image courtesy of Distribution Technologies) space is taken up by the product and by the operating gravitation mechanics that decrease energy usage and
continued on page 46

44 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


Join the growing list of distributors partnering with Cirrus Tech:

Contact us today to learn how to get more space, speed


and efficiency in the same space you have now.

▶ WATCH OUR VIDEO TO SEE HOW WE DO IT Because Every Case Counts™

www.cirrustech.com | mattb@cirrustech.com | 919.608.3401


Warehouse
continued from page 44
lower operational costs. appreciable amount that most wholesalers are looking
“Kegs, cartons or pallets are loaded into the high end for. Combining ASRS with other automated trends will
of pitched lanes, and product is dispensed from back to be the thing to look for in the future,” he says.
front via controlled downward glide to the pick station The company offers “The Crane,” its flagship ASRS
in an orderly flow that optimizes [first-in first-out] (FIFO) product currently in use by five beer wholesalers
inventory turnover and relieves congestion by separating with case volumes of 2 million to 10 million cases a
load and pick aisle,” Neuwirth explains. “Systems year, Dunham says. “Cirrus designs, configures and
are highly fluid, flexible and configurable, allowing customizes to each beverage distributors/suppliers
responsive adjustments to accommodate changing unique warehouse environment. … ASRS can help
product specs, applications or operational demands.” a warehouse reclaim up to 50 percent or more space
in the same footprint. If you are willing or able to go
MAXIMIZING EFFICIENCY higher, it compounds that number.
Given the proliferation of SKUs, today’s equipment “Technology of the ASRS should be able to gain
manufacturers offer a variety of automation technology inches or feet as technology changes, but as far
and storage systems to maximize efficiency and space. as moving full 3,000-pound pallets is concerned,
For example, Swisslog offers the AcPaQ mixed case the space savings at this point are undeniable,” he
palletizing system; the CarryStar fully automated layer continues. “The reality is that it is the software that
and stack picking solution; and the Vectura high-bay separates ASRS solutions providers and this is where
warehouse pallet stacker crane. the sophistication can be improved.”
“Beverage companies that utilize these new Distribution Technologies’ Hassenfratz notes that
advancements are able to improve their dynamic pick listening to clients’ needs and presenting a variety
zones and move forecasted SKUs closer to the output of solutions is important. “As a material handling
stations to improve storage utilization,” Swisslog’s integrator, we are product neutral. … The unused
Schwebel says. space is the cheapest warehouse space available. Before
If space is an issue in a beverage warehouse, Cirrus’ considering the construction of new warehouse space,
>>

UNEX offers a Keg Flow System that provides


Dunham says that manufacturers have two choices: the beverage distributor should acquire a material
dense, multi-level keg storage to accommodate
heavy 165-pound kegs, UNEX’s Brian Neuwirth says. expand or build greenfield, or put in an ASRS. “Some handling expert to evaluate his current facility to make
(Image courtesy of UNEX Manufacturing) picking systems can help you gain some space, not the sure the space is performing to its full potential.” BI

46 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


REGISTER
NOW!

THE M RESORT SPA & CASINO // LAS VEGAS

6
The 2019 BevOps Fleet Summit will encompass a
variety of exciting elements formulated to engage and
inspire today’s beverage decision makers who are BENEFITS OF ATTENDING:
responsible for warehousing, distribution and fleet
operations within their organization. In the summit’s
13th year, attendees will experience a high profile • Obtain a competitive advantage as you learn directly from industry leaders
keynote address, two tracks of engaging educational on current industry challenges and trends.
sessions, the coveted Ride & Drive/Equipment Demo • Make powerful connections and expand your industry network.
held at the Las Vegas Motor Speedway, elegant • Get behind the scenes with an in-depth and insightful tour of Southern
networking events and an interactive facility tour. Glazer’s Wine & Spirits “State of the Art” distribution facility.
• Discover the newest products and services and meet with the companies
ATTENDEE AND SPONSOR/ who provide them on site
EXHIBITOR REGISTRATIONS INCLUDE: • Get behind the wheel at our Ride & Drive Equipment/Demo where beverage
• All educational sessions f leet vehicles and distribution equipment can be tested on-site at the
• Facility tour (includes transportation) Las Vegas Motor Speedway
• Ride & Drive/Equipment Demo (includes transportation) • Enjoy some relaxed networking time at the annual golf outing and exquisite
• Welcome Reception with Complimentary Bar and Food Stations
• Breakfast, Lunch and Breaks on Wednesday and Thursday
receptions where we mix business with fun!
• Breakfast on Friday for Facility Tour Participants
• Registration Credentials
• Access to Exhibits
• Free WiFi THE M RESORT SPA & CASINO
702-797-1000

FOR THE BEST RATES,


BOOK YOUR TRAVEL NOW

& SAVE!

www com
2019 AGENDA
highlights
Check out www.BevOpsFleetSummit.com
for full agenda details!

TUESDAY, MARCH 19 THURSDAY, MARCH 21


11:30 am - 5:00 pm Golf Tournament Sponsored by 7:00 am - 11:00 am Registration Open
6:00 pm - 8:00 pm Welcome Reception 7:30 am - 8:30 am Breakfast/Exhibits Open
Sponsored by
8:30 am - 9:10 am KEYNOTE ADDRESS: Classic Brands Tackle
the Modern Supply Chain
WEDNESDAY, MARCH 20 Ron Kane, Chief Supply Chain Officer, Pabst Brewing Co.
7:00 am - 5:00 pm Registration 9:00 am - 10:00 am
8:00 am - 9:00 am Breakfast/Exhibits Open General Session Panel: Safety Training &
Management on the Road and in the Warehouse
9:00 am - 10:00 am KEYNOTE ADDRESS: E-commerce & Gary Yurt, President/Chief Safety Adviser, Industrial Safety & Training Services
the Digital Distribution Frontier Brian Lundberg, Operations Manager, Atlas Distributing
Cory Rellas, CEO, Drizly Eric Joseph, V.P. of Operations, Del Papa Distributing
10:00 am - 10:30 am Break/Exhibits Open 10:00 am - 10:30 am Break/Exhibits Open
10:30 am - 11:30 am 10:30 am - 12:00 pm BREAKOUTS
General Session Panel:
Going Big: Harnessing Big Data in Fleet & Warehouse Operations 10:30 am - 11:15 am What’s on the Regulatory Horizon
Dan Betz, Executive Vice President, Operations, Andrews Distributing David Consider, Senior Safety Adviser,
Lester Jones, Chief Economist, The National Beer Wholesalers Association National Safety Council
Kris Hacker, VP of Analytics & Business Development, Columbia Distributing
From Receiving Docks to Store Shelf –
11:30 am - 12:00 pm Exhibits Open What Works, What Doesn’t Work?
12:00 pm - 1:30 pm Roundtable Luncheon/Exhibits Open Greg Ellis, President, Precision Distribution Consulting
1:30 pm - 3:00 pm BREAKOUTS
11:15 am - 12:00 pm A World-Class Vehicle Maintenance Plan
1:30 pm - 2:15 pm CDL Training, Recruitment & Retention Andrew Zak, Master Lead Technician,
Steve Golladay, Manager and Owner,
Silver Eagle Distributors
Total System Thinking Solutions
Cyber-security for Today’s Beverage Facilities When Mother Nature Intervenes: Protecting Your Supply
Steve Holtsclaw, Director of IT, Del Papa Distributing Chain in the Wake of Natural Disasters
Greg Stephens, Director of Facility Management,
2:15 pm - 3:00 pm Silver Eagle Distributors
On Autopilot: The Potential Impact of Autonomous Vehicles
Matthew Trentacosta, Automotive Advisory Services Consultant, IHS Markit 12:00 pm - 12:15 pm Buses depart to Las Vegas Motor Speedway
End to End Automation for a Smarter Warehouse for Ride & Drive/Equipment Demo
Bob Ogden, director of operations, R.H. Barringer Distributing Co.
3:00 pm - 3:30 pm Break/Exhibits Open 1:00 pm - 4:00 pm Lunch Sponsored by

3:30 pm - 5:00 pm BREAKOUTS Ride & Drive/Equipment Demo


3:30 pm - 4:15 pm All-Electric: The Future of Sustainable Fleets? 4:00 pm - 5:00 pm Return to M Resort
Susan Beardslee, Principal Analyst,
Intelligent Transportation & eFreight, ABI Research 5:00 pm Open Evening
Recruiting & Retaining for Today’s Automated Warehouse
Gary Thompson, Executive Vice President & FRIDAY, MARCH 22
General Manager, Powers Distributing
8:00 am - 9:00 am Breakfast
4:15 pm - 5:00 pm Containing Costs Amidst Rising Freight & Fuel Prices
Julio Lopez, Fleet Supervisor, Silver Eagle Distributors 9:15 am Facility Tour
Strategies to Reduce Risks & Costs When Southern Glazers Wine & Spirits
Upgrading & Expanding
Chet Willey, President, Chet Willey Associates
Julian Rayzor, Sales Manager, GG Distributing L.L.C.
5:00 pm - 6:30 pm Networking Reception/Exhibits Open

www com
Warehouse

BevOps is Vegas bound


Annual summit
welcomes f leet, BEVERAGE INDUSTRY IS GEARING UP TO WELCOME THE ATTENDEES OF THE
13th annual BevOps Fleet Summit to fabulous Las Vegas. An event for beverage
operations experts warehousing and distribution professionals, the BevOps Fleet Summit will take
place March 19-21 at the M Resort Spa & Casino in Henderson, Nev. The three-day
conference will address the business challenges and industry trends of today’s
beverage marketplace and how operators can prepare for what’s next.
Those who attend the BevOps Fleet Summit are Sustainable Fleets?,” and “Containing Costs Amidst
able to obtain a competitive advantage by learning Rising Freight & Fuel Prices.”
directly from industry leaders about current trends For the operations tracks on March 20, the sessions
and challenges; making connections and expanding will feature “Cyber-security for Today’s Beverage
their industry network; getting hands-on experience at Facilities,” “End to End Automation for a Smarter
special live events; enjoying relaxed networking events; Warehouse,” “Recruiting & Retaining for Today’s
and discovering the newest products and services Automated Warehouse,” and “Strategies to Reduce
applicable to the industry. Risks & Costs When Upgrading & Expanding.”
For some, the conference will kick-off with a golf The next day of the conference begins at 8:30 a.m.
tournament at 11:30 a.m. on March 19. For those not with a keynote address from Ron Kane, chief supply
attending the golfing event, the conference will begin chain officer for Pabst Brewing Co. Kane will detail the
with a welcome reception slated from 6 to 8 p.m. complexities of the evolving U.S. distribution landscape
At 8 a.m. on March 20, the exhibit portion of the from the perspective of the country’s fifth-largest beer
event will open, allowing attendees to see the latest company.
solutions that support beverage warehouse and Kane’s address will immediately be followed by
distribution operations. The education portion of the a general session panel titled “Safety Training &
conference is set to begin at 9 a.m. with a keynote Management on the Road and in the Warehouse.”
address from Cory Rellas, chief executive officer of The panel will welcome Gary Yurt, president and
online alcohol-delivery provider Drizly. Rellas will chief safety adviser for Industrial Safety & Training
discuss the impact that eCommerce is having on Services; Brian Lundberg, operations manager for
beverage distribution and how partnering with beer, Atlas Distributing; and Eric Joseph, vice president
wine and spirits wholesalers is enhancing operations of operations for Del Papa Distributing. The group
across the supply chain. will discuss best practices and policies that beverage
That
T morning also will feature warehouses and fleets can apply for a safer working
a general session panel titled environment across the organization.
“Going Big: Harnessing Big The morning will continue with the final breakout
Data
D in Fleet & Warehouse sessions for the distribution and operations tracks.
Operations.”
O The panel will For distribution, the day will include “What’s on the
welcome
w Dan Betz, executive Regulatory Horizon” and “A World-Class Vehicle
vice
v president of operations for Maintenance Plan.” Concurrently, the operations
Andrews
A Distributing; Lester session will feature the topics “From Receiving
Jones,
Jo chief economist for the Docks to Store Shelf – What Works, What Doesn’t
National
N Beer Wholesalers Work?” and “When Mother Nature Intervenes:
Association;
As and Kris Hacker, Protecting Your Supply Chain in the Wake of
vice
vic president of analytics Natural Disasters.”
and
an business development for After the breakout sessions end, buses will load
Columbia
Co Distributing. The attendees for the Ride & Drive/Equipment Demo at
trio will discuss how beverage the Las Vegas Motor Speedway, which will take place
operations
op have become inundated with data from 1 to 4 p.m.
from
fro the road, trading partners and their The conclusion of the conference will culminate with
own
ow facilities and what it all means when a facility tour with Southern Glazers Wine & Spirits.
trying
try to optimize and manage beverage The 340,000-square-foot facility houses more than
operations.
op 17,000 SKUs and features the latest in cutting-edge
The afternoon will begin with separate conveyor, wave control, routing, inventory tracking
fleet
fl and operations tracks. For the and digital security technologies. Having packed and
fleet
f portion, topics will address hot- shipped more than 9 million cases in 2018 and with
button
b topics such as “CDL Training, current plans for expansion — an additional 110,000
Recruitment & Retention,” “On Autopilot: square feet — this is an ideal tour for those looking to
The Potential Impact of Autonomous discover what is needed to keep beverage distribution
Vehicles,” “All-Electric: The Future of successful going into the new decade. BI

50 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


WHAT TO SEE AT BOFS
ABCO FLEET SERVICES
4427 Midlothian Turnpike
Crestwood, IL 60418
Company website: abcofleetservices.com

Strick trailer dealer offering new and used beverage delivery trailers, rail lift sales and installation, OEM and aftermarket parts for all brands.
Reconditioned single-axle and tandem-axle tractors with warranties also available. Frame drops and side load body installation available. Side-load
trailer reconditioning including sub frames, suspension and King pin plates offered. OEM and aftermarket parts available for all trailer manufacturers
including complete door assemblies.

BROTHER MOBILE SOLUTIONS


11030 Circle Point Road, Suite 100
Westminster, CO 80020
Company website: brothermobilesoutions.com/route

Mobile printing for route accounting. We engineer compact, wireless, rugged mobile printing solutions that help you improve accuracy, deliver
goods faster, reduce shrinkage, manage inventory, serve more customers in a day, reduce errors, and improve cash flow. Quickly and wirelessly
print the documents and labels you need from practically any mobile device, smartphone or tablet. Compact, rugged and highly advanced mobile
thermal printers from Brother are designed to withstand the bumps, drops, and rough handling that can happen on the road — both indoors and
outdoors. Even in tough conditions, they keep performing.

CIRRUS TECH INC.


412 W. 48th St., Suite 6
Kearney, NE 68845
Company website: cirrustech.com

As a comprehensive integrator of material handling systems for more than 20 years and beverage industry leader in Crane System
implementations, Cirrus Tech offers world-class products, services and 24/7/365 support to customers across many industries. We have
automated and software solutions implemented in 30,000-square-foot warehouses to larger 1,000,000-square-foot distribution centers in both conventional existing facilities
and new-build facilities. Whether it is product retrieval, maximizing storage, reducing logistics costs, product rotation, real-time inventory management, or fulfilling orders more
efficiently, Cirrus Tech has best-in-class, automated hardware and software solutions that can fit any warehouse environment. The Cirrus Tech Crane System addresses the need
for more space and efficiencies in order picking, warehouse damaged beer, and touching product once versus four to five touches. The Cirrus Automated Case Picking System
optimizes the picking environment by reducing FTEs in order picking and replenishment, increasing picking rate, minimizing picking errors and cutting warehouse overtime.

DAIMLER TRUCKS NORTH AMERICA (FREIGHTLINER TRUCKS)


4555 N. Channel Ave.
Portland, OR 97217
Company website: Freightliner.com

The M2 106 is one of the best-selling medium duty trucks on the road and designed to get any job done. With a GVWR of up to
66,000 pounds, this versatile medium-duty truck supports a wide range of beverage bodies. In addition to being easy to upfit, the
M2 106 maximizes uptime, safety, quality and productivity to lower your Real Cost of Ownership (RCO). The M2 106 provides up to a 55-degree wheel cut, a low-profile
dash and ergonomic driver environment and best-in-class visibility. The M2 106 is also now available with the new Detroit DD8 engine and the Detroit DD5 engine, that
is equipped with Detroit Connect suite of connectivity services to maximize uptime.

DEMOUNTABLE CONCEPTS INC.


200 Acorn Road,
Glassboro, N.J. 08028
Company website: demount.com

Beverage and food distributors utilize the Warehouse on Wheels System by Demountable Concepts Inc. to change
their distribution model from Regional Warehousing to Centralized Distribution. This truck-based system provides
a cost-effective alternative to Regional Warehousing by utilizing tractor-trailers to line-haul preloaded truck bodies to a location near the regional market, where they’re
transferred to straight trucks for final mile delivery.

Other benefits include:


• No labor required to load and unload trucks at remote market • Goods can be line-hauled to remote market at off traffic hours
• Delivery drivers don’t have long drives to get to their routes (HOS compliance) • Refrigerated and van bodies can be hauled on the same trailer
• Drivers have more time to make deliveries because bodies arrive preloaded • Flexible truck-based system can be rolled out quickly to service
• Easier to source, less expensive non-CDL drivers in delivery market additional markets

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 51


Warehouse

ENCOMPASS TECHNOLOGIES
420 Linden St., Suite 200
Fort Collins, CO 80524
Company website: encompass8.com

Encompass Technologies comprehensive ERP software helps more than 600 beverage distribution warehouses increase operational efficiency and manage growth
effectively. The customizable system is specifically built for the distribution industry and functions to fit your unique business needs with products like route accounting,
warehouse management, sales execution, logistics, warehouse automation, retailer ordering tools, and more. Take control of your business with this all-in-one cloud-based
system Encompass ERP.

ESKER INC.
1850 Deming Way, Suite 150
Middleton, WI 53562
Company website: esker.com

As a worldwide leader in AI-driven process automation software, Esker offers companies integrated solutions for improving order-to-cash,
purchase-to-pay and document delivery performance. Founded in 1985, Esker operates in North America, Latin America, Europe and Asia Pacific with global headquarters
in Lyon, France, and U.S. headquarters in Madison, Wis. Esker’s TermSync AR platform includes an EIPP tool, a customer-facing invoice payments portal, an online credit
application tool, and a strategic collections management platform. The company has taken a CRM-like approach to its AR platform, automating AR’s most time-consuming
tasks while enabling staff to optimize their collections management processes. Esker reports an average of 29 percent reduction in DSO for clients that have used the
TermSync platform for at least six months. It also reports that its clients’ AR departments have been able to manage more accounts per staff member after adopting it. Esker
offers month-to-month contracts for new TermSync customers so that they can become acclimated to the solution before making a long-term decision.

FORD COMMERCIAL SOLUTIONS


Regent Court Building – 4 North 16800 Executive Plaza Drive
Dearborn, MI 48126
Company website: commercialsolutions.ford.com

Ford Commercial Solutions leverages the power of the Transportation Mobility Cloud to pass OEM-grade data from the modems
built into your Ford vehicles to your internal IT system or your telematics services provider, including Ford Telematics, ARI, Geotab,
Spireon or Verizon Connect. Ford Telematics is your gateway to our wide range of solutions. This simple yet powerful tool delivers fleet
information, insights and solutions right to your fingertips. The easy-to-use interface enables you to manage in real-time and quickly
assess where you need to take action. Its software that helps you optimize your fleet. Our integrated telematics hardware and software
have been engineered in conjunction with the Ford vehicles your fleet uses every day. This means that they work together seamlessly to deliver solutions that are easy to
implement and can have an immediate positive impact on your operational effectiveness. Maintain the power of choice with Ford Commercial Solutions.

FRAZIER INDUSTRIAL
91 Fairview Ave.
Long Valley, N.J. 07853
Company website: frazier.com

Frazier Industrial is the largest producer of structural steel pallet rack systems in North America with 10 manufacturing plants located throughout the United States,
Mexico and Canada. Frazier’s rack systems are quickly recognized for durability and custom engineered design. From standard pallet rack to complex pick-to-belt towers
and AS/RS installations, Frazier’s expert team of engineers will help each customer design the best, most cost-effective material handling solution. All pallet rack systems
are manufactured using 100 percent hot-rolled structural steel, the most durable and abuse-resistant material available.

GREENMILE
5736 S. Semoran Blvd., Building D
Orlando, FL 3822
Company website: greenmile.com

GreenMile is a leading cloud-based and mobile platform solution that allows companies to better manage their mobile team’s productivity by providing them with
visibility, actual-versus-planned management, real-time optimization and full analytics capabilities.

HDA ARCHITECTS
16150 Main Circle Drive, Suite 100
Chesterfield, MO 63017
Company website: hdai.com/beverage

HDA is an authority on beverage distribution facility design and functionality having worked with over 150 beverage wholesalers on facility needs.
Our vast experience ensures your facility will be designed to maximize your investment and control your costs. We combine our thorough understanding of the beverage industry
with your specific needs to design a facility that supports your unique image and operation today and in years to come. Many parties are involved when you undertake a major
construction project. HDA manages those entities on your behalf. We will bring your vision to reality and act as your extension, providing you the freedom to stay focused on
your business. When you decide it’s time to make an investment in your facility, HDA offers a full line of services that cover every component of your project. Whether it be
investigating a site and constructing a new facility or expanding an existing facility, our team will apply our proven process to deliver a quality project on time and on budget.

52 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


HINO TRUCKS
45501 12 Mile Road
Novi, MI 48377
Company website: hino.com

Carrying the name Hino XL Series, this all-new lineup rounds out Hino Trucks Class 7 product offering and launches them into the
Class 8 market for the first time in the U.S. The Hino XL7 and XL8 models are powered by Hino’s legendary A09 turbo diesel 8.9-liter
inline 6-cylinder engine boasting a B10 life of 1,000,000 miles. The Hino XL Series is offered in a host of straight truck and tractor
configurations ranging from a GVWR of 33,000 to 60,000 pounds and GCWR up to 66,000 pounds with max performance of 360 horsepower and 1,150 pound-feet torque.
Available wheel base selections of up to 304 inches, and tandem axle and fifth wheel configurations make this a versatile truck for many vocational applications. The lineup
features new active safety solutions with electronic stability control (standard on tractor) and collision mitigation systems, innovative payload management suspension options,
and a body builder friendly optimized design engineered for maximum ease of serviceability.

IDEALEASE INC.
430 N. Rand Road
North Barrington, IL 60010
Company website: idealease.com

Idealease offers a safe, cost-effective and efficient alternative to commercial truck ownership through our comprehensive truck leasing, truck rental, and dedicated
maintenance solutions. We are the industry experts at seamlessly transitioning businesses from truck ownership to full service leasing. Our responsive fleet services will
help keep your business running smoothly — allowing you to focus even more attention on serving your customers and growing your business. We have the expertise to
create transportation solutions for commercial fleets of all sizes. We employ the most seasoned and tenured truck leasing and truck rental professionals. They can show
you how our fleet services and dedicated maintenance can help reduce the risk and costs associated with commercial truck operations and fleet management. Idealease
is committed to vehicle uptime. We support a fleet of more than 45,000 trucks, tractors and trailers with the most proficient, manufacturer-certified technicians, a vast
parts inventory and the latest diagnostic equipment.

INTERNATIONAL TRUCK
2701 Navistar Drive,
Lisle, IL 60532
Company website: internationaltrucks.com

International Truck is a manufacturer of medium-duty, heavy-duty, and severe service commercial vehicles. Our mission is to provide best-in-class
uptime that keeps you on the road or on the job site. It’s about more than just building reliable trucks, it’s about taking safety, performance, and
driver comfort to a whole new level. From durability and ergonomics to connected technologies and more, it’s uptime at international truck. Our
offerings for the beverage industry include the LT Series and RH Series Class 8 tractors as well as the medium-duty MV Series.

DRIVERFIRST: Driver-focused design philosophy that improves comfort, safety and ergonomics to optimize productivity.
DIAMOND LOGIC ELECTRICAL SYSTEM: Advanced electronics allow for improved productivity and reliability while lowering operating costs.
UPTIME COMMAND CENTER: Real-time service data reviews and cross-functional support for A26 powered vehicles and more.
NORTH AMERICA’S LARGEST DEALER NETWORK: You’re never far from highly qualified technicians to get you back on the road faster.
ONCOMMAND CONNECTION: Connected technology keeps you informed about your fleet’s vehicles and maintenance for maximum uptime.

ISUZU COMMERCIAL TRUCK OF AMERICA INC.


1400 S. Douglass Road, Suite 100
Anaheim, CA 92806
Company website: isuzucv.com

Isuzu Commercial Truck of America, headquartered in Anaheim, Calif., is the No. 1 best-selling low cab forward truck in America, every
year since 1986. Isuzu offers a wide range of commercial trucks. The popular N-Series has Class 3 to 5 offerings, while the new FTR is
quickly becoming a favorite among Class 6 customers. Isuzu’s low-cab-forward design and multiple wheelbases accommodate body lengths from 10 to 30 feet and their diesel
and gas powertrains are among the top of their class in durability and fuel efficiency. The FTR will be on hand for you to experience at the Ride and Drive. Be sure to visit us and
see how Isuzu fits your transportation needs. For more information, call 866/441-9638 or visit isuzucv.com.

LEYMAN LIFT GATE


10335 Wayne Ave.
Cincinnati, OH 45215
Company website: leymanlift.com

For more than 50 years, Leyman Lift Gate continues to manufacture all-hydraulic liftgates that set the industry standards. At Leyman
Lift Gate, we build dynamic industry leading solutions paired with industry leading service to ensure our client’s success.

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 53


Warehouse

LYTX INC.
9785 Towne Centre Drive
San Diego, CA 92121
Company website: lytx.com

At Lytx, we harness the power of video and data to enable fleets to improve safety, efficiency, and security. Our flagship DriveCam safety program is the gold standard
for driver safety, helping to ensure that 850,000 drivers come home safely every day. Our Lytx Video Services platform delivers on-demand continual video and optional
livestream of the road to show even more critical moments — both on the road and in the field. We protect more than 3,000 clients commercial and government fleets
that log billions of miles worldwide each year. We empower our clients to realize significant returns on investment by lowering operating and insurance costs, while
achieving greater efficiency, compliance, and safety. Most of all, we strive to help save lives — on our roads and in our communities, every day. Lytx is privately held and
headquartered in San Diego, Calif. Visit us at lytx.com.

MERCEDES-BENZ USA LLC


One Mercedes-Benz Drive
Sandy Springs, GA 30328-4201
Company website: mbvans.com/sprinter/home

Mercedes-Benz Vans are ready to build your business. The new Sprinter is built for you, with available diesel and gas engines, and thousands of ways to
customize it to meet your needs. The innovative Metris delivers large-van capabilities in a mid-size van. Whatever you choose, we have the van to make
working easier, safer and more efficient. Mercedes-Benz Vans. Born to Run.

OMNITRACS LLC
717 N Harwood St., Suite 1300
Dallas, TX 75201
Company website: omnitracs.com

Omnitracs is a global pioneer of fleet management, routing and predictive analytics solutions for private and for-hire fleets. The Omnitracs platform is a single source of
truth that allows you to manage your transportation needs for creating routes, monitoring them in real time, and managing compliance information and driver behavior.
Create routes from orders, dispatch to mobile devices, and collect vehicle inspections and duty status — all from one mobile device and one backend solution. Drivers
use a single device in the cab for both compliance and trip management functions, on an Android tablet or a smartphone.

PACCAR LEASING CO.


777 106th Ave. NE
Bellevue, WA 98004
Company website: PacLease.com

PacLease, a PACCAR company, provides fleet customers with value-added transportation services and premium-quality Kenworth
and Peterbilt vehicles. With independent franchises and company-owned locations throughout the United States and Canada,
PacLease provides customized full-service lease, rental, and contract maintenance programs designed to meet specific fleet needs.
At PacLease, we work with our customers to learn about the intricacies of their business in order to create customized transportation
solutions for them. Along with our lease, rental, and maintenance programs, we offer a suite of customized solutions: PacTrainer, a
driver-training program; PacTrac, vehicle telematics to assist with fleet management; PacFuel, a fuel management solution; PacTax,
fuel tax management and reporting; and PacToll, a toll billing and management solution. At PacLease, we know that our business
depends on your business being successful, that is why we focus on keeping your business moving forward.

PDC INC.
150 Farm Lane, Suite 200
York, PA 17402
& 3025 Parker Road
Aurora, CO 80014
Company website: pdcinc.us

As an independent consulting firm, our business depends exclusively on satisfied clients. We specialize in customized, engineered solutions for warehouse layouts, pay
for performance programs, facility sizing and location, and sales and delivery optimization — from conceptual design to implementation management and training. For
over 600 beverage clients in 31 countries, we create unique and customized solutions based on empirical analysis and operational expertise.

PROPANE EDUCATION & RESEARCH COUNCIL


1140 Connecticut Ave NW, Suite 1075
Washington, D.C. 20036
Company website: propane.com

Propane-powered forklifts and trucks do more than just move inventory. They’ll give your productivity and bottom line a big lift, too. Visit the Propane Education &
Research Council in booth 34 or online at propane.com to learn more about propane, equipment, or to find a retailer near you.

54 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


ROUSH CLEANTECH / MICKEY TRUCK BODIES
12170 Globe St.
Livonia, MI 48150
& 1305 Trinity Ave.
High Point, N.C. 27261
Company website: ROUSHcleantech.com & mickeybody.com

ROUSH CleanTech and Mickey Truck Bodies have teamed up to provide “near zero” emission solutions to help combat volatile fuel and increasing maintenance costs
while minimizing a fleet’s environmental footprint. ROUSH CleanTech designs, engineers and manufactures alternative fuel and advanced technology systems for Ford
commercial trucks and vans, and has partnered with Mickey Truck Bodies, a leading manufacturer of truck bodies and trailers for a wide variety of industries, including
food and beverage, to help fleets increase their bottom line with a domestically produced alternative fuel and advanced technology.

RYDER SYSTEM INC.


11690 NW 105 St.
Miami, FL 33178
Company website: ryder.com

Ryder is a FORTUNE 500 commercial fleet management, dedicated transportation, and supply chain solutions company. Ryder’s stock (NYSE:R) is a component of
the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Ryder has been named among FORTUNE’s World’s Most Admired Companies, and has
been recognized for its industry-leading practices in third-party logistics, environmentally-friendly fleet and supply chain solutions, and world-class safety and security
programs. The company is a proud member of the American Red Cross Disaster Responder Program, supporting national and local disaster preparedness and response
efforts. For more information, visit www.ryder.com, and follow us on our Online Newsroom and social media pages: Facebook, LinkedIn, Twitter, Instagram and YouTube.

SAMSARA
350 Rhode Island St., Suite 400
San Francisco CA 94103
Company website: samsara.com

Samsara is an Internet of Things (IoT) company that transforms data from internet-connected sensors into immediately actionable insights for transportation, logistics,
and industrial applications. By combining plug-and-play sensors, wireless connectivity, real-time GPS, cameras, and rich cloud-hosted software, Samsara’s integrated
platform empowers manufacturers and fleets to boost operational efficiency, increase safety, simplify regulatory compliance and enhance customer service.

SONOCO THERMOSAFE
30553 S. Dixie Highway
Beecher, IL 60401
Company website: thermosafe.com

High quality, durable insulated containers for storage and transportation of refrigerated or any
temperature-sensitive products on non-refrigerated vehicles.

TWINLODE AUTOMATION
51024 Portage Road
South Bend, IN 46628
Company website: twinlodeautomation.com

Leveraging decades of experience, Twinlode Automation provides complete beverage warehouse solutions from concept to completion utilizing the industry’s most
advanced technology. In most warehouse environments, space is at a premium. Twinlode Automation has a wide range of rack systems ideally suited for the unique
requirements of the beverage industry, including case/carton and keg flow systems, as well as craft barrel racking, Twinlode’s iconic Gen2 pallet rack that exceeds seismic
considerations and allows warehouses to move two pallets at a time, and customizable automation systems. Twinlode Automation offers full management of a project,
focusing on the needs of the customer and putting an action plan to work that is both scalable and reliable for any beverage warehouse environment.

VECTOR FLEET MANAGEMENT


9300 Harris Corners Parkway, Suite 350
Charlotte, N.C. 28269
Company website: vectorfleet.com

Vector Fleet Management provides dedicated fleet maintenance and management programs which favorably impact costs, service levels, availability and life expectancy of
equipment. This is achieved through deploying skilled personnel, a world class fleet management information system, vocation specific fleet planning and competitive parts and
tire sourcing. These components are optimized by an experienced management team utilizing proven maintenance strategies and tactics. Since 1988, Vector Fleet Management
has consistently delivered reliable, customized and cost effective solutions because fleet maintenance is our one mission. Our singular focus on improving our clients
maintenance performance, allows them to focus on their core business and improve their bottom-line.

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 55


Warehouse

VEHICARE FLEET SOLUTIONS


3133 East Kemper Road,
Cincinnati, OH 45241
Company website: vehicare.com

VEHICARE is an asset management solutions provider that delivers a broad range of support for companies that operate equipment and want to maximize their return on
investment and uptime. Our solutions are customized to meet the specific needs of our customers and can include support and full services ranging from complete asset
management to preventative maintenance. We evaluate your business, create solutions and processes to solve key challenges, and utilize industry-leading data analysis to
take your fleet to best in class. Customize. Perform. Manage. Vehicare Fleet Solutions.

VIP (VERMONT INFORMATION PROCESSING)


402 Water Tower Circle
Colchester, VT 05446
Company website: public.vtinfo.com/

VIP is a 100 percent employee-owned company, and the leader in providing innovative business solutions to the beverage
industry. For more than 40 years, VIP has built long-lasting relationships with many of the most successful companies in
the beverage industry. Technology is transforming the warehouse. For distributors who embrace the change, deploying VIP’s
Warehouse Management System (WMS) allows them to manage SKU proliferation, a changing workforce, and ever-shifting
industry challenges while saving time and money. With VIP, you’ll have real time information — both in the warehouse and in the
trade. EasyPick, EasyOps, location-based inventory, and truck loading are just a few of the ways that you can eliminate errors,
maximize space utilization, and increase warehouse productivity and morale. But, these benefits aren’t just felt in the warehouse.
When you pick orders faster and more accurately, load them on trucks, and send fresh product off for delivery on time, you’re also
making happier customers.

WISE SYSTEMS
84 Sherman St.
Cambridge, MA 02140
Company website: wisesystems.com

Wise Systems builds autonomous dispatch and routing software with machine learning to continuously improve fleet
efficiency and performance. Trusted by the world’s largest brands, Wise automatically schedules routes, monitors routes
in progress, and intelligently adjusts to day-of delays on the ground. The Wise platform includes Wise Scheduler for
planning, Wise Dispatcher for day-of routing, and mobile iOS and Android apps including Wise Driver for drivers to
manage their routes, Wise Updates (for field personnel), and Wise Customer Portal (for delivery recipients). Our customers typically see an 80 percent reduction in late
deliveries, a 15 percent decrease in fleet miles, and fleet utilization improvements of 20 percent. Cloud-based, Wise’s next-generation route optimization platform can be
used on its own or integrated with other systems to bring real-time dynamic capabilities to fleets.

WORTHINGTON INDUSTRIES – CNG FUEL SYSTEMS


200 Old Wilson Bridge Road
Columbus, Ohio 43085
Company website: WorthingtonIndustries.com/CNG

Worthington Industries is the leading global manufacturer of pressure cylinders and related products for industrial, alternative fuel, energy
and consumer products markets. Our alternative fuels team is dedicated to maximizing a fleet operator’s investment in alternative fuels.
From truck specification to aftermarket support, our fuel systems are designed and developed to be the most efficient, reliable and safe
products in the market. Our commitment to providing fleets a safe and effective onboard CNG or RNG fueling option will ultimately improve
the longevity of a fleet, the experience of a driver and the environment. Available at the BevOps Fleet Summit Ride and Drive will be the
Worthington Industries Demo Truck, which features our 60 DGE Type 3 Rail Mount fuel system mounted on a Kenworth T680 Day Cab.

YALE MATERIALS HANDLING CORP.


1400 Sullivan Drive
Greenville, NC 27834
Company website: yale.com/north-america/en-us/

In a market where accuracy and uptime are everything, the reimagined Yale End Rider seeks to maximize precision and productivity. The
optional extended platform provides more than 30 percent more usable foot space than leading competitors and the ultra-cushion floor
mat helps reduce shock and vibration. LED platform and fork lights improve visibility in trailers and low-light areas and provide greater
pedestrian awareness. Efficiency and productivity are improved with advanced technology that bundles several key functions around a
convenient “shift” button. Operators can navigate quickly, precisely and in both directions with single-button speed and coast functions.
Reduced service times and increased service intervals allow the truck to be serviced faster and as much as 50 percent less often,
meaning less time out of operation and more time moving product. Built with the operator and application in mind, the new Yale End
Rider is challenging the competition as a powerful force in the beverage industry.

56 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


By John Peter Koss Operations Perspective

Installing effective
maintenance programs
EVERY SEGMENT OF THE BEVERAGE INDUSTRY IS A CAPITAL INTENSIVE Accounting for
operation. The facility, machinery, equipment and processes required to build
preventive, emergency
a carbonated soft drink (CSD) plant, brewery, winery or distillery creates assets
from which a return would be expected. With such important investments, the
maintenance
created assets must be protected to ensure maximized utilization and efficiency,
as well as minimized downtime and damage.
To accomplish these goals, the assets must be The following guidelines structured as dos and
adequately and properly maintained. However, don’ts, could be helpful:
the word maintenance can have different meanings Program — Manual (good for smaller operations)
depending on the operating conditions and a variety of or computerized (many available but caution on
management philosophies. Therefore, it is best to clarify application), in either case, should be simplistic and
this word before discussing or establishing guidelines configured to a facility’s physical needs, including
for an effective maintenance program. facility, machinery, equipment and processes.
From an operations perspective, two basic categories Proficient Personnel — Ensure maintenance
can be used to define specific types of maintenance. workers are selected according to specific criteria
First, use the basic premise to get maximum efficiency for scope of tasks pertinent to a plant location.
(utilization). Several terms such as preventive, Make sure workers are experienced and can pass
predictive, planned and scheduled maintenance knowledge level testing and, if not experienced, it
have been used with slight differences, but all are is necessary to train potential maintenance people
basically quite similar. The focus will be on preventive preferably by the manufacturer. Avoid having plant-
maintenance (PM), which in context, is planned, trained workers instruct other workers because
scheduled and predictive. this tends to lessen the effectiveness of program
Second, when machinery, equipment and/or execution. Any program must have top management
processes experience malfunctions it does in fact create commitment and possess mechanics who know how
an emergency operating situation requiring immediate to use effective managerial direction.
or emergency maintenance (EM). Budgeting — From experience, observation and
Using PM and EM categories and establishing an analysis/evaluation, the budgeting of maintenance
effective maintenance program must recognize the monies has always been a debatable and controversial
important and necessary relationship between the two. topic. The management committee is a part of the
Most machinery and equipment manufacturers budgeting process. Assets must be maintained to
usually establish recommended schedules, methods realize expected return-on-investment and length of
and procedures; however, the suggested guidelines service; therefore, budgets for maintenance, whether
might not be applicable after long-term use or if PM or EM, should be based on asset needs and
operating conditions change from what was initially performance records (including downtime logs, EM
intended. Therefore, modifications would be costs and adherence to PM schedules). Using this
necessary to adapt to the new operating conditions. approach can prevent unjustified, unnecessary and
In this situation, many manufacturer PM programs “cross the board” budget reductions that could cause
were manually administered and executed by plant asset damage going forward.
personnel trained by the manufacturer. The following are among the significant
From an engineering viewpoint, constantly changing maintenance program areas that should be evaluated:
designs, technology and complexity of maintenance ■ Compare – PMs scheduled versus actual
tasks created a new rationale and development completed
of computerized programs. To become effective, ■ Compare – PM cost versus EM cost
significant changes involved different personnel ■ Track – downtime before and after PM work
training, budgets and management philosophies to ■ Evaluate – cost trends of downtime during various
cope with specific new operating conditions. time periods
Keep in mind the distinct “working” relationship ■ Personnel – training log and activity: scheduled
between PM and EM and the execution necessary to versus actual
experience an effective program along with the factors ■ Analyze maintenance cost – percentage of asset
that contribute to that execution. Another basic premise value and trends from year-to-year (updated
John Peter Koss, the Beverage Operations
to be considered in an effective program is that EM annually)
Advisor, has more than 50 years of
cost decreases as PM cost increases. Also factored into ■ Upgrade programs as operating conditions change beverage industry experience, is a licensed
this comparison is the cost of downtime that will be ■ Determine facility maintenance needs before any registered professional engineer, and can
reduced or eliminated with justified PM cost. program acceptance. BI be contacted at oleboss@aol.com.

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 57


Supplier’s Marketplace

NEWS sizes of 25 to 125 hectoliters, the company says. The


Greenwich, Conn.-based Atlas Holdings GEA Craft Propagator, a smaller version of YEAST-
LLC acquired Saxco International LLC, STAR, which provides high capacity utilization with
Horsham, Pa., a value-added distributor full automation, is designed for smaller budgets and
smaller capacities and offers gentle homogenization,
of rigid packaging in the wine, spirits and
highly efficient aeration and adaptive temperature
craft beer markets. Saxco serves a customer
control, the company says. The system also allows
base of more than 5,000 wineries, distillers,
for more spontaneity and experimentation via
brewers and specialty food manufacturers reduced automation while providing vital and
across North America, the company says. highly fermentative yeast, it adds. The propagator
Terms of the transaction were not disclosed. is equipped with a recirculation pipe, an internal
aeration system and a sterile air measuring unit.
Aker Solutions, Fornebu, Norway, and During the propagation phase, the yeast cells in the
Siemens, Munich, Germany, signed a
Extracting cold-pressed juices reaction tank are intensively supplied with oxygen in
collaboration agreement to further develop JBT Corp. recently launched a new system for cold- order to keep them in a state of aerobic metabolism,
digital offerings in engineering, operations extracted fruit and vegetable juices designed to thus stimulating rapid growth of yeast cells. Unlike
overcome complications with traditional bag presses. the YEAST-STAR, assimilation takes place directly
and services. The collaboration focuses
Capable of processing various produce, including in the propagator with adjustable temperatures and
on the creation of software applications
whole watermelons, carrots, beets and berries, the aeration rates. The propagator also can be used to
and joint service offerings including the
READYGo FVP offers continuous, hygienic juice store the yeast crop from the large fermenters until the
development of industrial digital twins that extraction at as much as 5 tons an hour of raw next propagation, it says.
will drive efficiency throughout the entire product, the company says. Among the advantages ■ GEA Group, Peter–Müller-Str. 12, 40468 Düsseldorf,
plant lifecycle, the companies say. Aker the fruit and vegetable processing (FVP) system offers Germany; +011/49-211-9136-1503; gea.com.
Solutions will bring in its domain expertize compared with traditional bag systems is the FVP
and sector-specific digital offerings in does not require emptying and refilling after each
field development, asset performance and batch. Instead, the FVP offers continuous processing,
integrity, while Siemens will provide a wide which is hygienic and easy-to-clean, while at the same
range of digital offerings for the process time, unlike a bag press, is completely enclosed.
industries, they add. The FVP delivers a yield of anywhere between
50 to 92 percent across a range of commonly processed
fruits and vegetables, it adds. Depending on the
In support of beverage startups and
product, the fully automated FVP can hygienically
distributors, Downers Grove, Ill.-based
generate as many as 20 gallons a minute of fresh
Silgan Closures announced its Free
juice. The result of two years’ research involving
Closures for a Year contest. The company prototypes and precursors, the FVP skid incorporates
will evaluate new product concepts of all JBT’s proven chopper pump, the FVX-5, with an
beverage categories using its stock closures external FVG flow-through grinder and a UCF110
and select three finalists. Companies have screw finisher. No heat is applied during extraction,
until March 29 to participate, and the making the juice or blends suitable for immediate
winners will receive Free Closures for a Year bottling followed by high-pressure processing (HPP)
(not to exceed 500,000 closures) as well as with JBT’s Avure HPP system. The modular system
a process consultation and a complimentary encapsulates three pieces of equipment on a single
package evaluation. For more information, skid at a single price, the company says.
visit freeclosuresforayear.com. ■ JBT Corp., 400 Fairway Ave., Lakeland, Fla. 33801;
863/683-5411; jbt.com.
Los Angeles-based Rehrig Pacific
partnered with Virginia Tech University’s Precise chilling
Center for Packaging and Unit Load Design,
To help companies that produce wine, beer,
which put the company’s new fire-retardant distilled or dairy products or that require heating
pallets through an exhaustive battery of and/or cooling as part of its beverage process,
tests to simulate real-world warehouse and Delta T Systems Inc. announced that its chiller
supply chain conditions. Rehrig’s pallets technology now incorporates ambient dew points
survived as many as 200 cycles, making as a control system variable. A standard feature
them the first flame-retardant pallets on the on all of its process chillers, the Delta controller
market to achieve these standards, it says. is designed to monitor and adjust the chillers’ set
point temperature at or above ambient dew point
Isuzu Commercial Truck of America temperature. When the dew point temperature
Inc., Anaheim, Calif., broke multiple sales increases above the process control temperature,
records in 2018, making last year its new the controller automatically adjusts the set point
benchmark for Isuzu-brand trucks and to track with the dew point, the company says.
parts, it says. Isuzu dealers retailed a Yeast management Benefits of the now standard on-board ambient
temperature and humidity sensor include decreased
record-breaking 23,914 Isuzu trucks to for craft beer scrap rates, increased polymer strength, improved
customers in 2018. In addition, Isuzu parts The GEA Group reports that sales of the GEA Craft polymer appearance and the prevention of unsafe
sales increased 5.9 percent versus 2017. Propagator, a yeast propagation system specially slip hazards, it adds. Condensation prevention also
This also marks the fourth year in a row designed for small- and medium-sized craft breweries, will decrease unsanitary conditions, provide a longer
that Isuzu has established records in these now are underway. With production volumes ranging equipment life and prevent equipment damage or
important metrics, it reports. from 5 to 25 hectoliters, the propagator’s dimensions catastrophic failure.
are adaptable to GEA’s brewhouse solutions CRAFT- ■ Delta T Systems Inc., 2171 State Road 175,
STAR and COMPACT-STAR, which encompass brew Richfield, Wis. 53076; 800/733-4204; deltatsys.com.

58 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


BROUGHT TO YOU BY

JUNE 11-13, 2019 | MINNEAPOLIS CITY CENTER | Minneapolis, MN

GROW YOUR POTENTIAL


REGISTER BY FEB. 22 TO SAVE $200!
DISCOVER cutting-edge developments and new membrane applications.

LEARN from focused and relevant presentations on membrane


fundamentals, new technologies and applications.

CONNECT and network FACE-TO-FACE with hundreds of top industry


professionals.

EVALUATE the latest membrane technologies and products with multiple


suppliers who can answer your on-the-spot questions.

EXPERIENCE a vigorous exchange of ideas where you will gain fresh


ideas, trusted data and proactive solutions.

VISIT facility and plant tours, see the manufacturing operations of some
of the leading providers of membranes, up close!

Learn More & Register at:


www.membraneforum.com

2019 SPONSORS:
DIAMOND SPONSOR PLATINUM SPONSORS GOLD SPONSORS

SILVER SPONSORS BRONZE SPONSORS

Integrated Sanitation Intelligence

*AS OF 1/9/19
Supplier’s Marketplace

NEWS independently driven agitators: a screw auger, a high


speed disperser and a three-wing anchor agitator.
Imola, Italy-based SACMI unveiled new
The sides and bottom of the changeable mixing vessel
applications for molding and compression are insulated and jacketed for as much as 50 psig.
technology developed as part of a joint The vacuum-rated machine is designed to run 24/7,
research project with Germany-based supplied with rugged touchscreen controls showing
Polyoptics and German research institute digital readouts for speed, cycle time, vacuum level
KIMW. The new application aims to foster and batch temperature.
the development of optical parts such as ■ Charles Ross & Son Co., 710 Old Willets Path,
lighting lenses, advanced instrumentation Hauppauge, N.Y. 11788; 800/243-7677; mixers.com.
and parts for the automotive sector. On lab
scale, a special machine processed the
special thermoplastic polymers requested Retail-ready case packaging
for the manufacture of optical components,
Somic America Inc. offers a new packaging machine:
and KIMW verified the quality of the
the SOMIC-FLEXX III. The multi-purpose, retail-
produced samples. ready case packaging system collates and packages
soft or flexible products. The new concept allows
UNITED CAPS, Wiltz, Luxembourg, reports manufacturers to pack primary packages in a flat,
that it manufactured its 10 billionth closure nested position or a standing display orientation, the
in 2018, marking the first time in its 27-year company says. The SOMIC-FLEXX III can handle
history that 10 billion closures have been single or multi-component packaging including one-
produced in a 12-month period, it says. piece corrugated blanks for standard wraparound
shipping cases and two-piece tray and hood for
retail-ready presentations. Equipped with industrial
To support growth, flexibility and automation technology from Rockwell Automation,
sustainability of its KeyKeg and UniKeg
lines, The Netherlands-based Lightweight
the fast and flexible machine takes the collating,
grouping and packing of stand-up pouches, flow
Scissor-lift precision
Containers is expanding its manufacturing Verti-Lift Inc. offers scissor lift tables with tilt
packs, rigid containers and other items to a new
capacity throughout Europe. Along with a capabilities for improved ergonomics and product
dimension, the company says.
fully operational production line in Seaham, positioning. Now available in stainless steel
■ Somic America Inc., 500 Lone Oak Road, Suite 200;
United Kingdom, a production line in washdown designs, the lift tables integrate the
Eagan, Minn. 55122; 847/915-9872; somic.us.com. height adjustment of a scissor lift and can handing
Guadalajara, Spain, will begin operating in
lifting capacities of 2,000 to 4,000 pounds and a tilt
May to meet growing demand in that region.
range as wide as 60 degrees, making it suitable for
Plans for a sixth production line in Italy
a wide range of assembly line or batch production
already have been drawn up, the company applications, the company says. The tables also
says. All five of the state-of-the-art plants contain optional removable forks that automatically
feature the latest blow molding technology orient the workload for transport to the next cell. The
and machinery, as well as new automation company’s lift and tilt tables also are available in mild
and robotics technologies, it adds. steel, feature easily accessible internal power units,
heavy duty cylinders, hand or foot controls, heavy
Raleigh, N.C.-based MonarchFx, a duty tubular frames, heavy duty hydraulic cylinders,
business unit of Tompkins International, and lifetime lubricated kingpin bearings to ensure a
hired operations expert Scott Lenhoff to long service life with no maintenance, it adds.
oversee the company’s distributed logistics ■ Verti-Lift Inc., 5559 National Turnpike, Louisville, Ky.
facilities. As West Coast regional director, 40214; 502/361-0180; verti-lift.com.
Lenhoff is responsible for building, creating
and instituting state-of-the-art facilities
to help the company achieve optimal
productivity, accuracy, the lowest costing
possible, and give the company the ability
the handle millions of orders throughout a
given year.

Romeoville, Ill.-based BW Integrated Improved lifting and sealing


Systems, a Barry-Wehmiller packaging Charles Ross & Son Co. unveiled improvements to
company, named industry veteran Mike the dual-post hydraulic lift and seal design of its
Girtman as director of product development. 1,500-gallon multi-shaft mixer, Model PVM-1500. The
In this newly created role, Girtman will focus new lifting design is a double-acting, fully hydraulic
on driving innovative product development cylinder operating at a much higher pressure,
throughout the BW Integrated Systems allowing for a smaller cylinder and significantly less
product portfolio, which includes industry- oil for operation, the company says. The net result is
leading end-of-line solutions such as a lifting system that operates at lower cost, requires Wine designs for
cartoning, case packing, palletizing and less maintenance for the end user, and provides faster
robotic automation. lifting speed when raising and lowering the agitators. the modern vintner
In addition, the new seal arrangement allows seal Wine Cellar Innovations (WCI) launched a number of
replacement without removing agitator shafts. Unlike products to meet the growing trend in wine storage for
the historical design, seal replacement no longer modern wine cellars. Along with the rise in modern
requires removal of the mixer from the tank nor tank wine storage trends is the increasing amount of do-
entry to access the seal. The PVM-1500 features three it-yourself (DIY) wine cellar projects. Homeowners

60 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


have taken to creating DIY wine NEWS
racking arrangements for their personal
collections. To accommodate clients
In 2019, Elyria, Ohio-based Bendix is
on a budget, WCI has revolutionized rolling out new advanced training courses
its modern wine racking products by designed to help fleets, technicians and
making them available in kit format. owner-operators keep pace with today’s
The “Modern Vintner,” from the Vintner advancing truck technologies, it says. The
Series, includes the ability to work with company has doubled its technical training
different mediums including cable, force and enhanced its long-running
acrylic and wood. The Vintner Elite in-person training programs. In addition to
Cabinetry embraces contemporary the established three-day Air Brake Training
racking styles in kit format, while the class, a new two-day Advanced Technology
Acrylic 9 Column Individual and Cable Training program also is available. For
Racking units are affordable alternatives, AI controller solution more information, visit bendix.com or
closely reminiscent of the Contemporary Omron Automation Americas foundationbrakes.com.
Cable Wine Racking System. Another highlighted its new artificial intelligence
option is the Vintner Individual Concave (AI) controller solution that assists
Wine Racks collection, a modular the data-driven decision process for San Francisco, Calif.-based Vector, a
unit that comes in various height predictive maintenance. The Sysmac mobile-first workflow and transportation
configurations and can be stacked to AI controller is able to identify management platform, launched its Vector
accommodate any ceiling height and abnormal machine behavior without Back Office solution to help carriers and
comes in custom wood, stain and finish being explicitly programmed to do so shippers streamline data entry. It combines
and also extends equipment life with Vector’s smartphone scanning app with
options. Among the new stains offered
machine learning, the company says.
for a modern look are Graywash, intelligent processing to automatically
The solution also collects, analyzes and
Whitewash and Midnight Black. utilizes data on edge devices within fill data into documents. The app, built
■ Wine Cellar Innovations, 4575 Eastern a controller to prolong equipment specifically for the trucking industry, is used
Ave., Cincinnati, Ohio 45226; 800/229-9813; longevity. In addition, the AI controller in conjunction with a trucker’s smartphone
winecellarinnovations.com. can help manufacturers reduce the risk and the result is simplified document
of bad parts or equipment damage by handling and creation, the company says.
detecting issues early on and prompting
immediate action to resolve them.
Customers can take advantage of the
company’s advanced technology and
360-degree its team of data scientists to facilitate

cargo control
predictive maintenance, the company
says. Known as “machine learning,” THE
Kinedyne LLC introduced a new family AI functionality saves a significant
amount of time, resources and end- BEVERAGE OPERATIONS
ADVISOR
of ergonomically advanced EASE-Z
Winch Bars, which combine mechanical user cost savings, it adds. Rather
advantages, ergonomics and industrial than being a cloud solution, Omron’s
FOCUSED ON:
design to create its winch bar tools. The approach to AI-based control involves
patented Z-shaped winch bar rotates 360 hardware, offline software and in-person
degrees, providing users with greater service. No Internet connectivity or IT » Setting Performance Standards
leverage. The bar comes in one standard infrastructure/service is required, the » Maximizing Asset Utilization
model and two combination versions, company says.
which have modified handles that can ■ Omron Automation Americas, 2895
» Enhancing Productivity
be used to release tension on chain Greenspoint Pkwy., Suite 200, Hoffman » Motivating Personnel
binders. The tough, heat-treated carbon- Estates, Ill. 60169; 847/843-7900;
steel and mushroom-shaped head of
the EASE-Z Winch Bar is tapered for
omron247.com. CONSIDER:
easy insertion, and helps keep the bar » Comprehensive Conditions Analyses
seated in the winch cap, and prevents The perfect canvas » Establishing Operating Benchmarks
it from slipping out during revolution With the rise of craft beer, brewers are » Determining Personnel Competency Levels
and when the user is applying torque. A looking to differentiate their packaging
knurled non-slip handle with a flanged
grip ring on the bar’s upper shaft
in order to stand out from the crowd.
Multi-Color Corp. offers an alternative
BASIC TOOLS:
helps prevent it from slipping out of method for the decoration of aluminum
» Critical Time Analysis (CTA)™
users’ hands even in moist conditions.
cans such as cost-effective pressure » Constant Change Syndrome (CCS)™
Because the winch bar can be rotated as
sensitive or shrink sleeve can labels.
much as 360 degrees, users are able to
optimally position themselves and the They also allow the possibility for design BOTTOM LINE:
bar to deliver superior leverage when embellishments such as tactility, foil and » Operating Problem Solutions
matte-gloss finish, the company says.
tensioning winch straps. Available
The company recently worked with
» Productivity Improvement
in three models and lengths ranging
from 34 inches to 39 inches, the tool’s United Kingdom-based Hawkshead » Increase Asset Utilization
contoured, extruded Z-shape, bent-bar Brewery on developing bold, innovative
offset design can help reduce back, labels for its collection of eight lagers
shoulder and arm strain by eliminating and ales, it adds. It also worked with
the need to exert excessive upward or CHE Proximity, an Australia-based CONTACT:
downward force on the bar at awkward advertising agency, to produce labels as John Peter Koss
angles. a recruitment initiative for “Intern beer.” 19640 Cypress Circle | Lakes on the Green
■ Kinedyne LLC, 3040 US Highway 22 W., ■ Multi-Color Corp., 4053 Clough Woods Miami, FL 33018, USA
Suite 150, Branchburg, N.J. 08876; 800/848- Drive, Batavia, Ohio 45103; 513/381-1480; 305 829 3631 | fax 305 829 2484
6057; kinedyne.com. multicolorcorp.com. oleboss@aol.com

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 61


To place your classified ad in
Beverage Industry call
Catherine Wynn at
847-405-4010
Fax: 248-502-9109
E-mail: wynnc@bnpmedia.com

CAREER OPPORTUNITY EQUIPMENT FOR SALE TRUCK & TRAILER WASHING EQUIPMENT

advertise
HERE FOR
HIGH RESULTS!
SPEED Contact
DISPERSERS Catherine Wynn
Scan to learn more.
847-405-4010
wynnc@bnpmedia.com
Try our mobile app:
mixers.com/web-app

VISIT OUR
WEBSITE!
1-800-243-ROSS
www.dispersers.com bevindustry.com
PARTS FOR SALE

COMPETITIVE
CLASSIFIED R
ATES
Run with Beverage Industry!
Contact Catherine Wynn
Ph: 847-405-4010 | Fax: 248-502-9109 | wynnc@bnpmedia.com
CONTRACT PACKAGING EQUIPMENT FOR SALE

EQUIPMENT FOR SALE

62 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


To place your classified ad in
Beverage Industry call
Catherine Wynn at
847-405-4010
Fax: 248-502-9109
E-mail: wynnc@bnpmedia.com

INGREDIENTS SPRING WATER FOR SALE WANTED TO BUY

Need
d the inngredient for We buy BEVERAGE & FOOD
ALM
MON
ND MILK CLOSEOUTS
LOSE
LOSEOUT
EOUT
Casheew Milk
Ma
acada
a mia Milk
Walnuut Milk Nationwide pick up since 1993
or otheer tree--nut beverages?
Call Jon (954) 649-7857
WalnutGOLD™ ExtraSmooth Email: jon@whamfoods.com
Up to 100 million gallons per year
AlmondGOLD® ExtraSmooth Fully tested and approved www.whamcloseoutfoods.com
& CashewSUPREME™ ExtraSmooth Conveniently located on the 5000 CALIFORNIA
Acre Frawley Ranch in the Black MINERAL SPRING
PRODUCT & PROCESS Hills (Spearfish) South Dakota WATER AVAILABLE
DEVELOPMENT SERVICES AVAILABLE Historic buildings available for an
onsite operation including a IN BULK!
brewery or winery • Great Flavor • 8.4 Ph • 450 TDS
Cache Creek Foods LLC • 110mg per liter of Magnesium
Phone: 530-662-1764 Visit Frawley Ranches Inc. at WE WANT YOUR SURPLUS
www.FrawleyRanches.com • Located near I-5 outside
Connie@cachecreekfoods.com of Patterson, CA Coastline Sales Inc.
Contact Daryll Propp at 303-233-4000 • Fully licensed as source with WE’LL PAY TOP
www.cachecreekfoods.com or email DPropp@propprealty.com Title 21 available for review $DOLLAR$
SERVICES FOR YOUR SURPLUS
Most Americans are Magnesium
deficient, we want our water Finished Goods • Overruns

ATTENTION!
available to everyone. Raw Materials • Discontinued
TTB LABEL APPROVALS- Short-Coded
Contact Ray Tackaberry
TRADEMARK SEARCHES: Contact: Jerry @ 239-405-8802
408-897-3023
Labels Expedited, from $35 minimum jerryb@coastlinesalesinc.com
ray@mgwater.com
CONTRACT
Negotiations with all government
agencies including TTB (formerly BATF),
www.coastlinesalesinc.com
FDA and USDA are handled on the spot.

PACKAGERS Trademark searches 48 hours-$185.


Call, write or email for details.
Government Liasion Services, Inc.
VISIT THE CLASSIFIEDS
ONLINE CALL FOR
Promote Your Services Here... 200 North Glebe Rd., Suite 321 PRICING INFORMATION A SUPPLEMEN
T TO
Contact Catherine Wynn Arlington, VA 22203
CATHERINE WYNN
(703) 524-8200 or (800) 642-6564
847-405-4010 gls@trademarkinfo.com 847-405-4010
wynnc@bnpmedia.com www.trademarkinfo.com wynnc@bnpmedia.com

INCREASE TRAFFIC TO YOUR WEBSITE


BEVERAGE INDUSTRY’S
BI
ANNUAL MANUAL AM
2018/2019
ANNUAL MANUAL

& CONTRACT PACKAGING GUIDE CALENDAR


ASSOCIATIO • CONTRACT PACK
N LIS
PRODUCT TINGS • INDUSTRY
GUIDE • SU
AGING GU
LIS
IDE
PPLIER GU TINGS
IDE
SPONSORED
BY:

An Exclusive Buyers’ Guide & Handy Reference Tool for the Beverage Industry

BE SEEN for the entire year!


• Industry Specific Leads
• Online Features that Generate More Information about Product/Services
• Bring Your Company to High Ranking for Searches
• Reach over 36,000 key beverage professionals that have buying power
SPONSORSHIP OPPORTUNITIES
are available to a limited group of
• Brand Identity in Prime Position Suppliers & Contract Packagers
• Now Viewable on Mobile Phones Go to: www.bevindustry.com/manual
w.bevin
ndu
dust
stry
sttry
r .com
com
om//man
/manua
ual
al & ww
www
www.bevindustry.com/directories
w.bbe
beviind
bevi ndus
dus
usttry
try.com/dir
• Includes a widely-distributed Contract Packaging Guide For more information Contact: Catherine Wynn
• Engage with those online visitors requesting a proposal Phone: 847-405-4010 • FAX: 248-909-9109

bevindustry.com | FEBRUARY 2019 | Beverage Industry | 63


SOUR OR Sponsored energy
SWEET? Obstacle course race event Warrior
Dash and X2 All-Natural Energy
For your
BY TAYLOR KARG
Associate Editor
entered into a partnership making convenience
T
he chewable candy Sour Patch PepsiCo, in collaboration with Bay-area based
advertises with the tag line X2 the official energy drink of
Robby Technologies, launched Hello Goodness, a
“Sour. Sweet. Gone.,” to the race. Backed by 10 years of fleet of self-driving robots that contain snacks and
portray how people crave its sour, then
sweet taste. Although a different type research and development, X2 beverages for college campuses. Hello Goodness
of consumable, sour beverages, and features a patented formulation was first launched at the University of the Pacific
particularly sour
beers, increasingly are of critical ingredients that support in Stockton, Calif., giving college students a direct,
becoming something the development of adenosine better-for-you snacking experience, the company says.
consumers crave. The snackbots are user-friendly and are stocked with
Sour flavors are triphosphate (ATP), the body’s
consumables including Smartfood Delight, Baked
more likely to be essential source of real energy, Lay’s, SunChips, Pure Leaf Tea, bubly, LIFEWTR and
associated with
drinking kombucha; the company says. Warrior Dash Starbucks Cold Brew. “We’re thrilled to launch our
however, an participants will be treated to Hello Goodness autonomous delivery snackbots and
increasing amount
of craft brewers are X2 Energy samples in addition reimagine college snacking for the future,” said Scott
Finlow, vice president of innovation and insights at
experimenting with sour and tart flavors, to contests and activities at the
experts note. PepsiCo FoodService, in a statement.
In an October 2018 blog post titled X2 Energy display located in the
“Will sour beers lead to sweet success?,” Warrior Dash festival, it adds.
Jenny Zegler, associate director of Mintel
Food & Drink, explains how even though Scheduled to begin in March,
the number of launches of sour-flavored Warrior Dash events take place The
beers remain relatively small globally,
they are on the rise. throughout the year. perfect
“Sour beers are appealing to those
with adventurous flavor preferences, combo
but the tart brews are also attracting Pizza Hut announced
attention for delivering refreshment
suited for hot weather and post-exercise
Cook off for charity the expansion of its
consumption,” Zegler writes. Hall Wines announced plans for its 10th annual Cabernet category-first beer
The analyst uses Dogfish Head Cookoff, which will take place in April at the wine’s delivery program. First launched in December 2017
Brewery and its SeaQuench Ale Session headquarters in St. Helena, Calif. Hosted by Vintner Katheryn in parts of Arizona and California, the company
Sour as an example. “According to Hall, the annual event will feature a lineup of renowned Bay announced plans to expand the program to nearly
Dogfish Head, SeaQuench Ale has
become the fastest growing beer in the Area Chef teams vying for a chance to win proceeds for a 300 restaurants across Florida, Iowa, Nebraska,
craft brewery’s 23-year history,” she charity of their choice by participating in the food-and-wine- North Carolina and Ohio. The rollout is a brand
writes. pairing competition, the company says. One-hundred percent priority as Pizza Hut is aiming to grow beer
SeaQuench was recognized by fitness
of ticket proceeds benefit nonprofit organizations as selected delivery capabilities to 1,000 restaurants across
magazines such as Sports Illustrated
and Men’s Health magazine, which by the winning teams, it adds. “This event makes a difference new markets by this summer, it says. “We are
named it the Best Low-Calorie Beer in for many lives in our community,” Hall said in a statement. proud to be pioneers of beer delivery and are well-
2017 and 2018, she notes. “So many people come together to celebrate passion for food poised to take on more markets in the coming year,”
Sour beers also can target kombucha
fans, Zegler writes. “In the U.S., and wine, and in the end, local nonprofits garner awareness said Marianne Radley, chief brand officer at Pizza
kombucha is consumed by one-in-five and proceeds. Everyone participating comes out a winner.” Hut, in a statement.
older millennials and one-in-10 younger
millennials,” she says. “More brewers
can target kombucha fans by emulating
kombucha flavors.” A chance to create
To put this into perspective, Zegler Rapper Pusha-T and 1800 Tequila launched 1800 Seconds, a new
references brewers who make “hybrid” recording and artist discovery platform that gives unsigned artists a
products like Rogue Ale & Spirits who chance to write and release a new three-minute track with the full
created Kulture Clash, an imperial
blonde ale blended with kombucha tea production and marketing support of a record label, the company says.
from Brew Dr. Kombucha. 1800 Seconds intends to seek out new hip-hop sounds and help 10
As sour profiles continue to become on-the-rise artists release their music on a national scale, it adds.
more popular in the beverage world, it Each artist was handpicked by Pusha-T and will be featured on a
will be interesting to see whether more
craft brewers will hop on board the sour 30-minute compilation album on 1800seconds.com, Spotify, Apple Music
flavor train. and SoundCloud, the company says.

64 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


REGISTER BY 3/31
FOR BEST VALUE!

May 6 – 9, 2019
¨
Rosemont, Illinois

UPGRADE YOUR EDUCATION


BY GETTING CERITIFIED
The Food Safety Summit is offering 8 Certificate/Certification courses
including 3 NEW courses in 2019. All courses include breakfast,
lunch and breaks, books/training material and certificate.

NEW COURSES IN 2019


IA Conducting Vulnerability Assessments Course
This course will provide participants with the information and skills necessary to conduct
a vulnerability assessment that considers the three fundamental elements outlined in the IA rule.

Produce Safety Alliance Growing Training


This course is for fruit and vegetable growers and others interested in learning about produce safety,
the FSMA Produce Safety Rule, Good Agricultural Practices (GAPs), and co-management of natural
resources and food safety.

Seafood HACCP
This standard “live” 2.5 day Alliance training course is for the supply chain of the seafood processors
including food distribution warehouses and those companies that make, transport or stores seafood.

COURSES RETURNING IN 2019


• Certified in Comprehensive Food Safety (CCFS) • Professional Food Safety Auditor Training
• Foreign Supplier Verification • Preventative Controls for Human Foods
• HACCP Training

FULL AGENGA
www.FoodSafetySummit.com

2019 SPONSORS Platinum Gold Bronze

MEDIA PARTNERS PRODUCED BY

SNACK
FOOD & WHOLESALE
T H E AU T H O R I T Y O N T H E B U S I N E S S O F M E AT A N D P O U LT R Y P R O C E S S I N G

BAKERY
Ad Index
READER & MARKETING
Allied Electronics .................................................... 9 HDA Architects .....................................................46 SERVICES
www.thinkallied.com www.hdai.com/beverage LETTERS
JESSICA JACOBSEN
Allen Flavors ......................................................16-17 Hilmar Ingredients ................................................ 36 Mail: Beverage Industry
155 Pfingsten Road, Suite 205
www.allenflavors.com www.hilmaringredients.com Deerfield, IL 60015
E-mail: jacobsenj@bnpmedia.com

Amelia Bay ............................................................... 5 iTi Tropicals ...........................................................38 SINGLE COPY SALES/


BACK ISSUES
www.ameliabay.com www.ititropicals.com www.bevindustry.com/scs

Applied Food Sciences, Inc................................... 35 SUBSCRIPTIONS


Kyowa Hakko USA ................................................. 37
www.appliedfoods.com
CUSTOMER SERVICE
www.cognizin.com T: (800) 952-6643
F: (847) 763-9538
E-mail: bi@omeda.com
Beverage Forum 2019...........................................29 Lanxess ...................................................................15
www.beverageforum.com
CUSTOM MEDIA
www.nagardo.com
MELANIE KUCHMA
E-mail: kuchmam@bnpmedia.com
BevOps Fleet Summit.................................... 48-56 Lubriplate Lubricants Company ............................ 3 Call: (610) 383-7970

www.BevOpsFleetSummit.com www.lubriplate.com LIST RENTAL

Beverage Marketing Corporation ........................ 33 FOR POSTAL


Membrane Technology Forum .............................. 59 INFORMATION:
Contact Kevin Collopy at
BMCBeverageCompanyDatabase.com
www.membraneforum.com (402) 836-6265
Toll Free: (800) 223-2194, ext. 684
kevin.collopy@infogroup.com
Cirrus Tech Inc ......................................................45
Motion Industries .................................................... 7
FOR EMAIL
www.cirrustech.com
www.motionindustries.com INFORMATION:
Contact Michael Contantino at
(402) 836-6266
Clean Liquid Systems ............................................10 michael.contantino@infogroup.com
Nightclub & Bar Convention/Trade Show ...........43
www.cleanliquidsystems.com
www.NCBShow.com/register PRINT & INTERNET ADVERTISING
STEVE PINTARELLI
DMW&H .................................................................. 47 Western US
NVE Pharmaceuticals ............................................11
E-mail: pintarellis@bnpmedia.com
www.DMWandH.com Call: (949) 600-8092
www.nveusa.com
BRUCE KLION
Flavor Dynamics, Inc .............................................14 East Coast, Canada
PDC International .................................................. 31 E-mail: klionb@bnpmedia.com
www.flavordynamics.com Call: (248) 786-1716
www.pdc-corp.com
CHRISTOPHER CASEY
Food Safety Summit .............................................65 Midwest
E-mail: caseyc@bnpmedia.com
PLT Health Solutions ............................................ 39 Call: (847) 894-8761
www.foodsafetysummit.com
www.plthealth.com
Freightliner Trucks..........................................67, 68 CLASSIFIED

www.freightlinertrucks.com
Southeast Bottling & Beverage ............................41 CATHERINE WYNN
E-mail: Wynnc@bnpmedia.com
www.southeast-bottling.com Call: (847) 405-4010

GEA ........................................................................... 2
REPRINT
Tekleen ................................................................... 23
www.gea.com
JILL DEVRIES
www.tekleen.com devriesj@bnpmedia.com

Uline........................................................................25
www.uline.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
W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) Vacuum Barrier Corporation ................................. 13
362-3700, Fax: (248) 362-0317.
No charge for subscriptions to qualified individuals. www.vacuumbarrier.com
Annual rate for subscriptions to nonqualified individuals in the U.S.A.: $227.00 USD.
Annual rate for subscriptions to nonqualified individuals in Canada: $262.00 USD
BNP Media
(includes GST & postage); all other countries: $287.00 (int’l mail) payable in U.S. funds. 155 Pfingsten Road, Suite 205 | Deerfield, IL 60015
Worthington Industries ........................................ 27 Phone: (847) 405-4000 | Fax: (847) 405-4100
Printed in the U.S.A. Copyright 2019, by BNP Media II, L.L.C. All rights reserved. The
contents of this publication may not be reproduced in whole or in part without the consent
of the publisher. The publisher is not responsible for product claims and representations.
www.worthingtonindustries.com/beverage
Periodicals Postage Paid at Troy, MI and at additional mailing offices. Reaching an average qualified circulation
POSTMASTER: of 35,914 copies.
Send address changes to: BEVERAGE INDUSTRY, P.O. Box 2145, Skokie, IL 60076. Source: June 2016 BPA Brand Report
Canada Post: Publications Mail Agreement #40612608. GST account: 131263923.
Send returns (Canada) to IMEX Global Solutions, P.O. Box 25542, London, ON, N6C 6B2. Also publishers of BrandPackaging, Candy
Change of address: Send old address label along with new address to Industry, Dairy Foods, Flexible Packaging, Food & Beverage
BEVERAGE INDUSTRY, P.O. Box 2145, Skokie, IL 60076. Packaging, Food Engineering, Industria Alimenticia, The
For subscription information or service, please contact Customer Service at: National Provisioner, Perishables Buyer, Prepared Foods,
Phone: (800)952-6643 Fax: (847)763-9538.
Private Label Buyer, and Snack Food & Wholesale Bakery.

66 | Beverage Industry | FEBRUARY 2019 | bevindustry.com


Driven by the best.
THE NEW DETROIT ™ DD8 ™ ENGINE
IN THE FREIGHTLINER ® M2 106.

The legendary maker of heavy-duty engines, now makes


one for your business. Introducing the new Detroit DD8
engine, available in the versatile Freightliner M2 106—one of
the best-selling medium-duty trucks on the road. The DD8 is
specifically designed to keep businesses like yours on the
move and profitable with an industry-leading maintenance
schedule that features oil change intervals up to 3X better
than the competition. Backed by our extensive service
TM
network and equipped with Detroit Connect Virtual
SM
Technician remote diagnostic service for maximum uptime.
The legend continues with the new Detroit DD8 engine.

demanddetroit.com/engines/DD8

DDC-EMC-ADV-0032-0617. Specifications are subject to change without notice. Detroit Diesel Corporation is registered
to ISO 9001:2008. Copyright © 2018 Detroit Diesel Corporation. All rights reserved. Detroit™ is a brand of Detroit Diesel
Corporation, a subsidiary of Daimler Trucks North America LLC, a Daimler company.
THE FREIGHTLINER M2 106 WITH THE ULTRA-EFFICIENT DETROIT™ DD8™ ENGINE.
Detroit, the maker of legendary heavy-duty engines, now makes them for the best-selling medium-duty truck
on the road. The versatile Freightliner M2 106. Keeping businesses like yours on the move and profitable. The DD8
and DD5TM are equipped with Detroit Connect Virtual TechnicianSM remote diagnostic service for maximum uptime.
TM

With a legend under the hood you don’t just run the route—you conquer it.

To learn more about how our trucks can help your business, visit Freightliner.com.

Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. FTL/MC-A-1483. Specifications are subject to change without notice.
Copyright © 2018 Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.