Though Coke North America exhibited at this year's InterBev trade show in Atlanta Oct. 20-22, neither Pepsi North America nor Cadbury did. PepsiCo's Tropicana/Gatorade unit was present. Show program indicated Red Bull had signed up for large exhibit space, but was not present. Some smaller companies say scaled-down presence of larger companies was a plus. Executive: "Without the big guys here, we're getting a lot more attention." Plus. One theme at show was smaller beverage companies seeking distributors. Jones Soda president Peter van Stolk: "What we have is a brand, what we need is distribution."
Health of show. InterBev is owned by Reed Exhibitions; acquired from National Soft Drink Association (NSDA) in 1999. Attendance this year about 7000, according to Reed vp Eileen Baird. Says Reed "very pleased" with show and "attendance was up +14%" vs InterBev in New Orleans in 2000. Exhibitors down from 613 in 2000 to "just over 500" this year. But Baird adds, "people are already booking" for 2004 in Orlando. Changes. Last time show was held in Atlanta, in 1994, attendance was 14,500. Decline generally due to two factors. One is industry consolidation. Second, when show was owned by NSDA, some companies supported it to support NSDA. Though show smaller, many attendees give it high marks. Exhibitors expressed mixed views: 1) "We don't figure on selling anything here, but we might gather some leads." 2) "(Show) works for us, it has value for our dollars." 3) "Look how empty the floor is. I feel like I need to put on a show of some kind to get a crowd around." 4) "We lined up a couple of distributors." 5) "We'll be back."
Products. Green Sheet, Part 1 presents highlights from multiple exhibitors. Coke displays long-expected Dasani Nutriwater in blue, 16-oz PET. Monarch shows new package for All Sport; features foam insulation wrap around PET bottle. Carolina Beverage introduces new 12-oz, non-returnable glass bottle for Cheerwine to help position it as "premium CSD." Executives. Two beverage industry executives address attendees: Jeff Dunn, president/COO Coke Americas; and Jones Soda president van Stolk.
Dunn. Cites importance of innovation and notes Vanilla Coke volume YTD totals 60 mil cases. Declares innovation "must be sustainable." Notes many dot.com companies "had good ideas, but they weren't sustainable." Adds, "where there's no meaningful innovation, growth slows." Five lessons. Dunn sets forth "five lessons." 1) consumer relevancy has to drive everything. Cites Red Bull as example. Notes it created not just new brand, "but also a whole new beverage category." 2) brands, not products, create sustaining value, and innovation builds brands. Declares in 21st century, "innovation on big brands will be essential." 3) "You aren't really committed to innovation unless you're willing to fail." 4) innovation must be "everything and everyone." It must permeate all parts of company. 5) innovation must apply to "our social contract with communities." Cites industry's efforts on environmental and obesity issues.
Van Stolk. Jones Soda president says company focuses on Generation Y, "they're a tough crowd to sell." Notes, "if we tell these kids we're cool, we're so far away from cool it's sad ... The kids don't need our stuff, (and) we market understanding that." Customization. Van Stolk cites importance of customization. Company has received patent on "customizing branded merchandise on the internet." Says Jones is "most inter-active beverage out there." Company offers consumers opportunity to put own photos on labels through "My Jones" program. 'They know we're cool.' Also offers broader customization; notes Nintendo uses special Jones packages at Circuit City stores. Jones has produced specially branded product for Starbucks. Says Nike, Armani, Honda, Toyota, etc "have all called Jones Soda ... They know we're cool." Numbers. Says Jones does $24-$25 mil in annual revenues; 48 mil bottles; as bottles are 12-oz, that equals about 3 mil unit cases. Jones has 280 U.S. distributors.
Honorees. At InterBev, two trade magazines announce honorees. Beverage Industry names Cott CEO Frank Weise "Executive of the Year." Beverage World names five new "Hall of Fame" members: 1) Roger Easley, president 7UP San Francisco. 2) Harold Honickman, chairman Pepsi/Canada Dry New York. 3) Jim Maloney (posthumous), former CEO Coke New York. 4) Mario Pastega, president Pepsi Pastega Corvallis Oregon. 5) E.P. Severns, president Coke Kokomo Indiana. 6) Donal Sharp, CEO Big Red.
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