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Home » Briefs: October 28, 2019

Briefs: October 28, 2019

October 28, 2019

Pepsi Syrup for SodaStream. PepsiCo-owned SodaStream is now selling Pepsi-Cola and Mtn Dew flavor syrups in Sweden and Norway for its at-home beverage maker. Other brands available are Pepsi MAX, 7UP, 7UP Free, Mirinda, Diet Mirinda, Diet Mtn Dew, Schwip Schwap and Schwip Schwap Zero. Distribution will expand to Germany and France in March, according to SodaStream. There are no plans for a US launch, a PepsiCo spokesman said. When PepsiCo announced its SodaStream acquisition in 2018, North America Beverages CEO Kirk Tanner told bottlers in a letter that core brands such as Pepsi-Cola and Mtn Dew wouldn’t be part of the offering (BD 8/28/18). A few years earlier, PepsiCo tested, expanded and later abandoned a branded syrup concept called ‘Pepsi Homemade’ for the SodaStream device (BD 10/24/14 and BD 9/11/15). The syrups were variants of Pepsi and Sierra Mist formulated for the device. At the time, CEO Indra Nooyi said at a 2014 Future Smarts conference that Pepsi made at home “will never match up to the taste.” Plastic Waste. Since purchasing SodaStream in late 2018, PepsiCo has used the company to help reinforce its sustainability messaging around plastic waste. For years, SodaStream aggressively marketed itself as the antidote to single-use plastic beverage containers, often piling up discarded Coke and Pepsi bottles for various marketing stunts. While SodaStream’s rhetoric has since been toned down, PepsiCo has not shied away from the underlying point. “Launching iconic PepsiCo flavors is a major milestone in SodaStream’s mission to bring consumers the best beverage choices, while caring for our planet,” SodaStream CEO Eyal Shohat said in a statement announcing the new syrups in Europe. Jim Andrew, EVP for PepsiCo’s SodaStream, Beyond the Bottle, and New Ventures unit, added: “Together with SodaStream, we are working to advance our shared goal of reducing plastic waste and building a more sustainable future.”

ABA Initiative. Tomorrow, the American Beverage Association will announce details of what it calls an “Every Bottle Back” initiative “to reduce the industry’s use of new plastic and invest in recycling infrastructure across the country.” Coca-Cola, Keurig Dr Pepper and PepsiCo have partnered with World Wildlife Fund and Closed Loop Partners for the program (see our Q&A with Closed Loop from last year’s Future Smarts conference; BD 2/1/19). The companies will make the announcement at the National Press Club in DC as part of this week’s ABA centennial celebration.

Nestlé Waters Reorganization. Nestlé Waters will fold its standalone global water business into its regional business units. The company will focus on premium and functional waters rather than low-margin bottled water brands. The shift away from commoditized multi-pack water offerings is similar to one Coca-Cola and PepsiCo made during the past decade. Nestlé Waters Chairman and CEO Maurizio Patarnello will leave the company. The US bottled water category grew about +3.3% by volume and +5.2% by dollars through early September as category growth decelerates. Nestlé Waters North America total water sales at retail this year through mid-October fell by -5.3% by volume and -1.3% by dollars**.  Note.  Nestlé Waters VP and CMO Yumi Clevenger-Lee will speak at BD’s Future Smarts Conference in New York on Dec. 9. See details and register HERE.
**CORRECTION: An earlier version of this story misstated Nestlé Waters North America YTD sales due to an error in data provided to BD.

Coca-Cola 3Q Results. On Oct. 18, Coca-Cola reported global organic revenue growth of +5% on volume that rose +2%. North America (US, Canada) organic revenue grew +3% as volume increased +1% and pricing jumped +3% in North America. Tea/coffee was only product cluster that didn’t grow volume in North America, the company said. Globally, sparkling soft drinks volume grew +2%; juice, dairy and plant-based drinks grew +1%, led by Minute Maid and Simply in North America; water, enhanced water and sports drinks were up +2%; and tea and coffee jumped +4%. Coke Energy. During a call with analysts, CEO James Quincey said the coming Coke Energy launch in North America will include more variants than in Europe to increase visibility in an already competitive energy drink market with “a lot of SKUs in it already.” He also reiterated that the strategy for Coke Energy in the US is “bring new consumers into the category rather than competing for current ones.” Note. In case you missed it, BD issued an email news alert on Oct. 18 with interview comments from Quincey about plastic waste and recycling.

Sustainability. Fiji Water has set a goal to use 100% recycled plastic for its bottled water by 2025 … A company called Chlorophyll Water has launched a biodegradable version of a re-usable water bottle; the company said its bottle includes a proprietary additive “designed to attract microbial activity within the landfill.”

Technology. Coca-Cola European Partners’ innovation fund, CCEP Ventures, announced its first investments in a self-driving robotics technology company and an on-demand delivery start-up.

Launches, Expansions. Bolthouse Farms, run once again by former Coca-Cola executive Jeff Dunn, plans to launch 25 CBD-infused products in January, including in the coffee and juice categories, Dunn told Yahoo Finance … Waterloo Sparkling Water said it added more than 2,000 retail outlets during the third quarter, including Target stores … Hal’s New York has released a limited-edition Cola flavored seltzer water “for those who miss the soda taste, but not the cheap, high-calorie or artificially sweetened drinks of the past.,” according to a press release.

Quick Takes. PepsiCo named Southeastern Bottling in Safford, Arizona as its 2018 Donald M. Kendall Bottler of the Year, which is named for PepsiCo’s former CEO and honors the best independent bottler ... Arglass, along with a JV partner from Japan, is building a $123 million glass container manufacturing plant in Valdosta, Georgia that will help reduce imports from China and other countries when it opens by November 2020, the company said … Canada’s legalization of cannabis-infused edibles and beverages took effect on Oct. 17, although sales of products including THC and CBD won’t begin until at least December as regulations are hammered out.

Juice Dairy Make Your Own Plant Based Sustainability Technology Sweetener Briefs Energy Sports Drinks Packaging
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